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Tailored Brands files voluntary bankruptcy petitions

04 Aug '20
2 min read
Pic: Tailored Brands
Pic: Tailored Brands

US retail holding firm Tailored Brands and certain of its subsidiaries recently announced that they have entered into a restructuring support agreement (RSA) with more than 75 per cent of their senior lenders. To implement the terms of the RSA, the company has filed voluntary Chapter 11 petitions in the bankruptcy court in Southern District of Texas.

The RSA outlines terms for a pre-arranged financial restructuring plan that is expected to reduce the company’s funded debt by at least $630 million.

It is also expected to offer increased financial flexibility to enable Tailored Brands to continue its focus on generating profitable growth and driving value for customers and stakeholders, a press release from the company said.

Throughout the restructuring process, the company expects that its four retail brands, Men’s Wearhouse, Jos A. Bank, Moores Clothing for Men and K&G Fashion Superstore, will continue to provide customers with the selection, convenience, service and value that help people look and feel their best in the moments that matter, while continuing to prioritise the safety and well-being of employees and customers.

Tailored Brands aims to move quickly through the process, it said. The company has received commitments for $500 million in debtor-in-possession financing from its existing revolving credit facility lenders.

The court has 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 authorised it 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 programmes and pay vendor partners in the ordinary course for all goods and services provided after the date of the Chapter 11 filing.

Fibre2Fashion News Desk (DS)

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