Tailored Brands (TLRD) - Get Report, owner of Men's Wearhouse and Jos. A. Bank, said Tuesday that it would cut about 20% of its corporate positions by the end of the second quarter and close as many as 500 stores, due to "the unprecedented and industrywide business disruptions resulting from the coronavirus pandemic."
In addition, Tailored Brands said that Chief Financial Officer Jack Calandra was leaving the company as of July 31.
In the near term, the company said, Calandra's responsibilities will be divided between President and Chief Executive Dinesh Lathi and Holly Etlin, a managing director at AlixPartners, who has been appointed to the new post of chief restructuring officer.
Tailored Brands said it expects to record a $6 million second-quarter charge for severance payments and other termination costs.
AlixPartners is a New York consultant known for its work in turning around companies. It has advised on some of the largest Chapter 11 reorganizations including General Motors, Kmart and Enron Corp.
In 2014, AlixPartners was brought on board to advise on the merger between Jos. A. Bank and Men's Wearhouse.
As of Feb. 1, Tailored Brands had about 13,700 employees and operated 1,450 stores under the Men's Wearhouse, Men's Wearhouse and Tux, Jos. A. Bank, and K&G brands.
Tailored Brands, which has reopened 96% of its retail stores, has identified as many as 500 stores to be closed over time. The company said that it has not yet quantified the expense savings and costs related to potential store closures.
"Unfortunately, due to the covid-19 pandemic and its significant impact on our business, further actions are needed to help us strengthen our financial position so we can navigate our current realities," Lathi said in a statement.
In March, Tailored Brands said it was furloughing all U.S. store employees in response to the coronavirus pandemic.
Shares of the Houston retailer at last check were 5.9% higher at 74 cents.