Bloomsberg reports Tailored Brands — which runs the Jos A Bank, Moores and K&G banners along with Men's Wearhouse — plans to file for bankruptcy as the retailer has struggling with declining top-line for years, while margins and profits have shrunk. It has tried to turn things around with new marketing campaigns and technology services, but comparable sales declines at Men's Wearhouse actually widened last year. The company's long-term debt stands at about $1.1 billion.
Like scores of peers, Tailored Brands reduced its store footprint in March, furloughed employees and cut executive pay as the COVID-19 pandemic spread through the US. While it began reopening stores last month, the shutdown has wrought financial havoc on distressed retailers in particular.
Starting in the first week of March, retailer's performance became more uneven and further decelerated in the second week as local and regional governments started taking actions to slow the spread of the disease. Even though the business apparel specialist has reopened some of its stores, it still faces a potential acceleration in casualization in clothing, as workers around the country work from home.
