Parent Company of Men’s Wearhouse Files for Bankruptcy
Wednesday, August 5th, 2020
Tailored Brands, Inc. and certain of its subsidiaries (collectively “Tailored Brands” or the “Company”) announced that today the Company received approvals from the United States Bankruptcy Court for the Southern District of Texas (the “Court”) for its First Day Motions related to its voluntary Chapter 11 petitions filed on August 2, 2020.
Among the motions approved, the Court granted interim approval of the Company’s motion to access $500 million debtor-in-possession financing provided by its existing revolving credit facility lenders and to access the cash collateral of both its existing revolving credit facility lenders and term loan lenders. The Court also authorized the Company to continue to pay employees as usual and provide pre-existing health and welfare benefits, honor customer gift cards, rental reservations and custom clothing orders, maintain existing loyalty programs and pay vendor partners in the ordinary course for all goods and services provided after the date of the Chapter 11 filing.
“The Court’s prompt approval of our First Day Motions is a clear step forward that enables us to serve our customers, take care of our team and meet our go-forward financial commitments as we work to achieve our financial goals,” said Tailored Brands President and CEO Dinesh Lathi. “The approval of these motions is an important milestone on our path to positioning our brands to better compete and succeed in today’s retail environment and beyond. We appreciate the continued support of our senior lenders—and all of our stakeholders—during this process and look forward to moving swiftly ahead.”