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Tailored Brands Exits Bankruptcy After Restructuring

Men's-clothing retailer Tailored Brands has emerged from bankruptcy proceedings after a restructuring that eliminated $686 million of debt.

Tailored Brands  (TLRD) - Get Tailored Brands, Inc. Report on Wednesday said it has exited bankruptcy after a financial restructuring at the men's-apparel retailer.

The company said it had eliminated $686 million of debt. The Fremont, Calif., company said it had implemented the reorganization plan confirmed by the U.S. Bankruptcy Court on Nov. 13, 2020.

Via the Chapter 11 process, Tailored Brands has "gained the financial and operational flexibility we need to support each of our brands in this rapidly evolving retail environment, continue to show up strong for our customers and remain an attractive employer," President and Chief Executive Dinesh Lathi said in a statement. 

Tailored Brands operates Men’s Wearhouse, Jos. A. Bank, Moores Clothing for Men and discount chain K&G Fashion Superstore.

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The company's capital structure consists of a $430 million lending facility, a $365 million exit term loan and $75 million of cash from a new debt facility. 

It "expects that this exit financing will support ongoing operations and enable the company to execute on its strategic initiatives."

The fashion retailer had filed for bankruptcy in August this year when the coronavirus disrupted businesses due to enforced lockdowns. 

Specifically, the company said in a filing with the Securities and Exchange Commission that it didn't have enough cash on hand or expected cash to pay its creditors under its asset-backed-loan facility beginning in the fourth quarter of fiscal 2020.