Tupelo • Tailored Brands, the parent company of Men’s Wearhouse and Jos. A. Banks, filed for bankruptcy on Sunday, along with Lord & Taylor, one of America’s oldest department stores, joining a growing list of stores slammed by the coronavirus pandemic.
According to CNBC, Many of the companies that have filed for Chapter 11 in recent weeks were already struggling, but the forced closure of non-essential stores in March pushed them to the brink.
Tailored Brands, which filed for Chapter 11 Sunday in the Southern District of Texas, said it would continue to operate Men’s Wearhouse and Jos. A. Banks stores, along with K&G Fashion Superstore and Moores Clothing for Men, which it also owns. It said in a release that a restructuring plan is expected to reduce the company’s funded debt by at least $630 million and provide increased financial flexibility. The clothier has been hit hard by pandemic-related store shutdowns, reporting last month that first-quarter sales were down 60%. Since July 1, Tailored Brands has missed interest payments on bonds, slashed its corporate workforce by 20%, announced plans to close up to 500 stores and was notified that it will be delisted by the New York Stock Exchange. The company operated more than 1,400 stores in the U.S. and Canada as of Feb. 1, and employed more than 1,900 people.
Lord & Taylor, which was sold to the French rental clothing company Le Tote Inc. last year, filed Sunday for bankruptcy protection in the Eastern Court of Virginia.
In an announcement on its website the company, one of the oldest American department stores, said it was looking for a new owner.
Like many retailers, Lord & Taylor was already struggling with the shift to online shopping even before the pandemic struck this spring. Last year, it sold its flagship building on New York’s Fifth Avenue after more than a century in the 11-story building.
The company was founded as a dry goods store in 1826. There are several dozen Lord & Taylor stores across the country.