Fresh out of bankruptcy, beleaguered men’s retailer Tailored Brands Inc. has closed on $75 million in new financing.
The Men’s Warehouse owner received $50 million in mandatorily convertible notes and $25 million in additional senior secured debt, it announced Friday. The investment, coming from a group of existing shareholders and lenders, arrives three months after the business completed a financial restructuring and exited Chapter 11.
The restructuring Tailored underwent late last year eliminated $686 million in debt and gave it an improved capital structure that included a $430 million asset-based lending facility, a $365 million exit term loan and $75 million of cash from a new debt facility. The latest $75 million in new financing, it said, will provide additional liquidity as it works to advance its strategic plans and ensure it is positioned to meet customers’ needs following the Covid-19 pandemic.
President and CEO Dinesh Lathi said Tailored is seeing “solid momentum” across its brands and is continuing to advance its key strategic priorities, such as opening two “Next-Gen” Men’s Wearhouse stores in Texas and Georgia. At the same time, he added, the company is evolving its merchandise assortment with new and expanded partnerships with Michael Strahan, Vera Wang and Alternative Apparel, as well as enhancing its omnichannel experience.
“This additional financing further ensures we can continue to keep pace with our plans to come out of the pandemic stronger than ever and strategically positioned to help our customers look and feel their best in the moments that matter,” Lathi said in a statement. “We are grateful to our shareholders and lenders for their continued support and confidence as we continue to execute our strategic plan.”
Tailored, which also owns Jos. A. Bank, Moores Clothing for Men and K&G Fashion Superstore, filed its voluntary Chapter 11 petition in August. The company entered into an agreement with more than 75 percent of its senior lenders just before it filed for bankruptcy court protection. When it exited Chapter 11, it said it had the support of its new owners, which are comprised of its pre-bankruptcy lenders.