Tailored Brands gets 75 million dollar loan

Tailored Brands will live another day. The retailer, which is the parent company for Jos. A Bank, Men’s Wearhouse, and Moores, has secured a 75 million dollar loan from a group of existing shareholders and lenders. The financing includes 50 million dollars of mandatorily convertible notes and 25 million dollars in additional senior secured debt.

The company reported that they’d seen a decline in business from December 2020 through January 2021, which resulted in it underperforming from the expectations set by their Chapter 11 bankruptcy reorganization plan. To continue operations, the company sought 75 million dollars from one of its existing lenders, Silver Point Capital LP. The loan would be converted to equity within three years at 1 dollar a share.

The trustee in the bankruptcy case supported the request for additional funding saying that without the loan that Tailored Brands Inc. would likely have to liquidate. Tailored Brands Inc. was able to eliminated 686 million dollars of its debt through bankruptcy, in addition to closing 500 stores and negotiating a 430 million asset-based loan facility, a 365 million dollar exit-term loan, and 75 million dollars of cash from a new debt facility.

Tailored Brands Inc. is focusing on the launch of Men’s Wearhouse Next-Gen stores and expanding partnership with Michael Strahan, Vera Wang, and Alternative Apparel to turn its business around. The company was particularly hard hit by the coronavirus pandemic with very few people buying suiting or formal wear in an economy where most office workers shifted to a work from home model. The company is still confident they can rebound as the world slowly begins to emerge from the coronavirus pandemic as the vaccine rollout continues.

Image: tuxedo.menswearhouse.com