In a filing with the Securities and Exchange Commission made late on Monday, the Houston-based company said it was “… likely that we will pursue a reorganization under applicable bankruptcy laws, possibly as soon as during the third quarter of fiscal 2020, which begins on Aug. 2, 2020.”
Specifically, the company said in the filing that it doesn’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.
Management is exploring alternatives, “including seeking a restructuring, amendment or refinancing of our debt through a private restructuring or reorganization under applicable bankruptcy laws,” the retailer said.
Tailored Brands joins a growing list of retailers that are seeking bankruptcy protection, not only amid plunging demand related to to the pandemic and rapid economic about-face but also due to drastic changes in what consumers spend money on, specifically work office-geared attire.
The company earlier this month said it would cut about 20% of its corporate positionsby 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," resulting in a $6 million second-quarter charge.
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