Business suits aren't very suitable for the work-from-home life, which has forced the owner of Men's Wearhouse and Jos. A. Bank to file for bankruptcy.
Tailored Brands filed for Chapter 11 on Sunday in Texas. In a news release, it says it will continue to operate Men's Wearhouse and Jos. A. Bank stores, but notes the bankruptcy filing will help it implement a financial restructuring plan.
According to Jos. A. Bank's website, the company is "restructuring to better suit the times."
“As evidenced by the positive results we saw in January and February, we have made significant progress in refining our assortments, strengthening our omni-channel offering and evolving our marketing channel and creative mix. However, the unprecedented impact of COVID-19 requires us to further adapt and evolve,” Tailored Brands President and CEO Dinesh Lathi said in a statement.
“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.”
Last month, Tailored Brands said it would close about one-third of its stores, CNN reports.
It's not clear which Men's Wearhouse (there are 13 in Minnesota) and Jos. A. Bank (there are five in Minnesota) stores will close. Men's Wearhouse's website says "While we expect we’ll have fewer stores, we’ll still be ready to serve you across 50 states and in every major metro area."
Jos. A. Bank's website says it's still figuring out which stores will close, with more information expected in the coming months.
CNN says Tailored Brands has filed court motions to ensure it can continue paying employees and keep benefits intact, as well as allow the company to honor gift cards and custom clothing orders.
Many retail stores have been struggling in the wake of the COVID-19 pandemic and stay-at-home orders, but clothing brands that sell items fit for the office have faced an even tougher time.
NBC News says as of late July, about 40 retailers have filed for Chapter 11 bankruptcy so far this year, which is more than last year, and about two dozen of the retailers have sought bankruptcy protection since the start of the pandemic.
That list includes Brooks Brothers, the company that owns Ann Taylor and Lane Bryant, as well as J. Crew, JCPenney, Nieman Marcus and Lord and Taylor.