This month, American clothing retailer Tailored Brands will exit from Chapter 11 bankruptcy as the retailer has won the court’s approval to restructure operations. The restructuring plan involves eliminating $686 million of funded debt and turning the ownership to lenders and other creditors.
The retailer had been struggling even before the outbreak of COVID-19. The onset of the pandemic worsened its crisis leading to temporary store closures and declines in Q1 sales.
The retailer’s Q1 revenue fell by over 60 per cent, which eventually led to permanent shutting down of around 500 stores. After it exits from bankruptcy, the retailer will have $ 430 million asset-based loan facility in addition to an exit term loan of $365 million.
It will also have a cash of $75 million from new debt facility to help the retailer in its strategic initiatives. The retailer has launched the new buy online pick up in store initiative to better serve its customers in these tough times. It generated $ 2.881 billion revenues in 2019.
