Men’s Warehouse owner Tailored Brands plans to cut jobs and close stores

A showcase for Jos. A. Bank

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The parent company of Men’s Warehouse announced a round of layoffs and hundreds of impending store closings Tuesday as its business suffers a hit from the coronavirus pandemic.

Tailored Brands said it is eliminating approximately 20% of its corporate workforce by the end of its second fiscal quarter. She also said she has selected up to 500 of her stores that she could close “over time.” She did not reveal a list of those exact locations.

He also announced that his current CFO, Jack Calandra, will leave the company on July 31. In the short term, he said Calandra’s responsibilities will be divided between its CEO and Holly Etlin, managing director of AlixPartners who has been appointed to a new lead role in custom brand restructuring.

“Unfortunately, due to the COVID-19 pandemic and its significant impact on our business, more action is needed to help us strengthen our financial position so that we can navigate our current realities,” said Tailored Brands President and CEO Dinesh. Lathi.

“While today’s announcement is difficult, we are confident that these are the right next steps to protect our business and position ourselves to compete more effectively in today’s environment,” he said.

The announcements come after earlier this month, Tailored Brands defaulted on a $ 6.1 million payment to bondholders, prompting a 30-day grace period.

With the layoffs, Tailored Brands said it expects to post a pre-tax charge of approximately $ 6 million in the second quarter for severance payments and other termination costs, all of which are cash expenses. She said she has not yet quantified how much she will save with the store closings.

In addition to Men’s Wearhouse, Tailored Brands also operates Jos. A. Bank, Moores Clothing for Men and K&G.

As of February 1, the company had 1,450 stores in the United States.

Shares of Tailored Brands, which are trading below $ 1, recently dropped approximately 1.5%. The stock has fallen more than 83% this year. The company has a market capitalization of $ 34.1 million.