Fashion retailer Tailored Brands emerges from bankruptcy protection

Fashion retailer Tailored Brands emerges from bankruptcy protection

Tailored Brands said on Tuesday it has emerged from bankruptcy protection following a financial restructuring process that helped the U.S. men's fashion retailer eliminate US$686 million of debt from its balance sheet.

A Tailored Brands Men's Wearhouse store is seen in New York
FILE PHOTO: A Tailored Brands Men's Wearhouse store is seen in New York City, U.S., July 31, 2020. REUTERS/Brendan McDermid

REUTERS: Tailored Brands said on Tuesday it has emerged from bankruptcy protection following a financial restructuring process that helped the U.S. men's fashion retailer eliminate US$686 million of debt from its balance sheet.

The Houston-based company in August filed for Chapter 11 bankruptcy, joining a list of brick-and-mortar retailers succumbing to the hit from the COVID-19 pandemic.

It confirmed a restructuring plan last month that consisted of a US$430 million lending facility.

Tailored Brands said on Tuesday it now operates with a capital structure that includes an exit term loan of US$365 million, which it expects will support its ongoing operations and strategic initiatives.

The company in July announced plans to cut its workforce by 20per cent and shut as many as 500 stores, in response to the impact of the pandemic.

(Reporting by Derek Francis in Bengaluru; Editing by Ramakrishnan M.)

Source: Reuters

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