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The parent of discount retailer Men’s Wearhouse has emerged from bankruptcy just in time for the holiday shopping season after wiping away $686 million in debt.
(ticker: TLRDQ), which also owns Jos A. Bank, Moores Clothing for Men and K&G, sought bankruptcy protection in August, just one of several retail casualties of pandemic-induced business shutdowns this year.
The Houston-based company said it has repositioned itself to boost sales online as well as through stores and has realigned its merchandise for “today’s needs and trends.”
“We are confident we are well-positioned for the future and look forward to building upon this momentum as we enter this next chapter,” said CEO Dinesh Lathi in a statement.
As retailers and mall operators struggle with low in-store foot traffic and sales, many are looking to online sales to take up the slack. According to Adobe Analytics, consumers spent $9 billion online on Black Friday, a 21.6% increase over last year. It was also the second-largest online spending day in U.S. history.
Forced store closures, reduced occupancy, and social distancing guidelines wreaked havoc on retailers this year, forcing many into bankruptcy court, including Neiman Marcus,
Lord & Taylor, and Brooks Brothers.
In July, Tailored Brands said it would cut 20% of its workforce and close 500 locations, citing the “unprecedented and industrywide business disruptions.”
The National Retail Federation has tried to put a positive spin the industry despite this year’s challenges. For every segment, there are more companies opening stores than closing them, it says on its website.
Last month, the NRF said holiday sales are expected to rise between 3.6% and 5.2% compared with last year, showing a “strong finish” to 2020 despite the Covid-19 pandemic.
Tailored Brands’ restructuring plan includes a new $430 million loan and a $365 million exit loan, as well as $75 million in cash raised from a debt facility.
Write to Liz Moyer at [email protected]