Men’s Wearhouse owner Tailored Brands has announced it expects to exit Chapter 11 bankruptcy by the end of November after winning approval for its reorganisation plan by the US Bankruptcy Court for the Southern District of Texas.
The company filed for bankruptcy back in August after experiencing a significant hit from Covid-19.
In July, the company announced it would be cutting around 20 percent of its corporate workforce and closing around 500 retail stores to mitigate the financial impact of the pandemic.
Under the terms of its approved reorganization, the company said it will emerge with a strengthened capital structure having eliminated 686 million dollars of funded debt from its balance sheet.
The capital structure of the reorganized company is expected to consist of a 430 million dollars ABL facility, a 365 million dollar exit term loan and a 75 millions of cash from a new debt facility “to support ongoing operations and strategic initiatives”.
Tailored Brands president and CEO Dinesh Lathi described the latest news as a “milestone” for the company. “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.”
Photo credit: Men’s Wearhouse, Facebook