Men’s-clothing retailer Tailored Brands (TLRD) - Get Report said Thursday that it’s furloughing all U.S. store employees, as it extends the closure of retail stores until at least May 4 in response to the coronavirus.
A “significant portion” of workers in its distribution network and offices also will be furloughed, the Houston company said in a statement.
Chief Executive Dinesh Lathi, executive vice presidents, senior vice presidents and board members face pay cuts during the period. For Lathi and the directors, that’s 50%.
Tailored Brands’ stores include Men's Wearhouse and Jos. A. Bank. On March 17 it said it was closing stores through March 28. The company operates more than 1,400 stores and more than 18,000 employees.
“It was a very difficult decision to furlough employees and one that we did not take lightly,” Lathi said in the company statement.
“However, this is an important step to ensure the durability of our company and the livelihood it provides for so many.”
He said Tailored Brands is helping furloughed staffers through continued benefit programs, information about jobs that may be open in their areas, and information on government resources.
Tailored Brands is reviewing whether it can restart its e-commerce fulfillment “in a way that protects employee health and is cash-flow positive,” the company said.
Last Thursday, Tailored Brands said it was closing its e-commerce fulfillment centers through at least March 28.
Tailored Brands shares at last check stood at $1.55, down 3.7%. The stock had dropped 55% in the one-month period through Wednesday.