MENLO PARK, NJ — Another national retailer with a local address has filed for bankruptcy. Tailored Brands, the parent company of Men's Wearhouse and Jos. A. Bank, has filed for Chapter 11 bankruptcy protection as part of a restructuring plan.
It’s the result of a rise in debt and a drop in demand for office attire attributed to the pandemic, as millions of office employees are now working from home in more casual clothing.
"The unprecedented impact of COVID-19 requires us to further adapt and evolve," Tailored Brands CEO Dinesh Lathi said in a statement announcing the bankruptcy late on Sunday. "Reaching an agreement with our lenders represents a critical milestone toward our goal of becoming a stronger Company that has the financial and operational flexibility to compete and win in the rapidly evolving retail environment."
Stores will continue operating, but Tailored Brands has said it plans to close about a third of its stores and cut 20 percent of corporate positions.
Men's Wearhouse and Jos. A. Bank are the latest bankruptcies in retails, joining J.C. Penney, Neiman Marcus, Brooks Brothers, J. Crew, Lord & Taylor and many others.
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