“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,” said CEO Dinesh Lathi.
The group, which also owns Moores Clothing for Men and K&G Fashion Superstore, said it will continue to serve customers throughout the restructuring process. “Tailored Brands aims to move quickly through the process,” it added.
The company has also filed motions with the court to ensure it can to continue paying employees as usual and keep benefits intact. The motions will also allow it to honor customer gift cards, rental reservations, custom clothing orders and loyalty programs.
Menswear companies have struggled during the pandemic, as millions of office workers labored at home in casual clothing. Year-over-year sales of men’s formal clothing fell 74% between April and June, according to GlobalData Retail.
-— Jordan Valinsky, Chris Isidore and Rob McLean contributed reporting.