The retailer and its advisers have started reaching out to interested parties about reworking its debts of more than $1 billion, according to people with knowledge of the matter. One option is a Chapter 11 filing, which would allow Tailored Brands to keep some of its stores operating while it seeks to shut weaker locations and satisfy its creditors, the people said. Its shares, which had climbed by as much as 33% on Monday, were down more than 17% after the market close.
Plans are in the early stages and could change, with Tailored Brands still seeking alternative forms of financing, according to the people. They asked not to be identified discussing a private matter.
“As a matter of company policy, we don’t comment on market rumors or speculation,” Houston-based Tailored Brands said in an email to Bloomberg.
Management is getting counsel from law firm
Representatives from Kirkland, PJT and Houlihan declined to comment. Gibson Dunn didn’t immediately return messages seeking comment.
The restructuring plans could depend on market conditions and the outlook for stores to re-open, the people said. Sales have suffered because government officials were telling shoppers to stay home and nonessential businesses to stay shut to combat the Covid-19 pandemic.
Tailored Brands was struggling even before the outbreak. Sales have fallen every year since 2016 as Men’s Wearhouse and Jos. A. Bank contended with changing consumer tastes and ecommerce rivals.
The coronavirus made things worse by keeping office workers at home, all but eliminating the need for suits and ties. The outbreak also postponed events such as weddings and other celebrations, cutting into sales of formal wear.
Debt issued by Men’s Wearhouse has cratered to deeply distressed levels since March, with some of its
The company traces its roots to 1973, when
Chief Executive Officer
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