US menswear retailer Tailored Brands, owner of the Men’s Wearhouse, Jos. A. Bank, Moores Clothing for Men and K&G brands, expects to emerge from Chapter 11 protection by the end of November after a bankruptcy court confirmed its plan of reorganisation.
Under the terms of the plan, Tailored Brands will emerge with a strengthened capital structure having eliminated US$686m of funded debt from its balance sheet. The capital structure of the reorganised company is expected to consist of a $430m ABL facility, a $365m exit term loan, and $75m of cash from a new debt facility to support ongoing operations and strategic initiatives.
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The company filed for Chapter 11 bankruptcy protection in August.
“Over the past three months, we have not only continued to advance steadily through this financial restructuring but also implemented new buy online, pick up in-store and contactless payment technology to better serve our customers during the pandemic; further curated our assortments to make them more shoppable and relevant; opened our first next-generation store in Shenandoah, Texas; developed new partnerships; and continued to advance important diversity, equity and inclusion initiatives, consistent with our corporate values. These and other actions taken while in Chapter 11 are the continuation of a strategic transformation that started well before Covid-19 and will position us to compete and succeed for the long term,” says Tailored Brands president and CEO Dinesh Lathi.
A number of US retailers have succumbed to bankruptcy during the pandemic, including Stein Mart, Ascena Retail Group, and department store Lord & Taylor.
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By GlobalData
