• Parent company Tailored Brands leaves bankruptcy with less debt burden
  • The Houston-based retailer has cash and a $365 million loan on hand
  • Tailored Brands' umbrella includes Men's Wearhouse, Jos. A. Bank, and K&G Fashion Superstore

Tailored Brands, the parent company of Men’s Wearhouse and other outlets, announced it had emerged from Chapter 11 bankruptcy Tuesday amid a coronavirus crisis that has crippled the retail fashion apparrel industry.

“I want to thank all of the lenders, employees, customers, landlords, vendors and other partners who helped us get to this point,” Tailored Brands President and Chief Executive Officer Dinesh Lathi said in a statement.

In addition to Men's Wearhouse, the Houston-based fashion retailer also includes Jos. A. Bank, Moore's Clothing for Men and K&G Fashion Superstore among its outlets.

Tailored Brands filed for bankruptcy protection in August, buckling along with many other chains under the pressures from social restrictions enacted during the pandemic.

In November, the company announced the U.S. Bankruptcy Court for the Southern District of Texas confirmed its final reorganization plan, which included a $365 million exit term loan and $75 million in cash from a new debt facility.

Citing the “unprecedented and industrywide business disruptions” during the pandemic, the company in July said it would close some 500 stores and cut about 20% of its workforce.

Lathi said his company was able to strengthen its brands during bankruptcy proceedings by curating merchandise to align more with trends and customer needs.

“As a result, we are confident we are well-positioned for the future and look forward to building upon this momentum as we enter this next chapter,” he stated.

Emerging from bankruptcy comes just in time for the struggling retailer to take advantage of holiday shopping season. In-store traffic on so-called Black Friday was down 52%, but CNBC reported that shopping online came in around $9 billion, up 21.6% from the same period last year.

Other apparrel retailers are not so fortunate. Francesca’s announced in mid-November that it would be closing 140 stores by the end of January 2021. Youth fashion chain Justice said it closed stores and its e-commerce portal this month, and pet food supplier Pet Valu announced it would close all 358 of its stores and warehouse locations in the U.S. due to the ongoing impact of the COVID-19 pandemic.

Men's Wearhouse Tailored Brands
A man walks past a Men's Warehouse store on January 6, 2014 in New York City. Men's Warehouse acquired competitor Jos. A Bank in 2014, which also sells men's suits and business wear. Getty Images/Andrew Burton