Accommodate retailer Men’s Wearhouse submitted for personal bankruptcy on Sunday as the coronavirus has kept tens of millions of business employees at property and in lounge trousers.
Father or mother enterprise Personalized Brand names, which also owns Jos A. Lender, submitted for Chapter 11 safety in Houston, Texas, immediately after reaching a offer with a vast majority of its lenders to hold 1,400 merchants open.
The offer provides the battling retailer, which also owns Moores Apparel for Males and K&G Trend Superstore, $five hundred million debtor-in-possession financing to hold the merchants open as it seeks to decrease its credit card debt by $630 million.
“The unprecedented affect of COVID-19 needs us to additional adapt and evolve,” Personalized Brand names CEO Dinesh Lathi stated in a statement. “Reaching an arrangement with our lenders signifies a crucial milestone towards our intention of becoming a much better enterprise that has the monetary and operational adaptability to contend and gain in the rapidly evolving retail environment.”
Personalized Brand names hinted at trouble in July when it stated it prepared to close five hundred merchants and decrease its workforce by about twenty %. Its submitting is the most up-to-date in a extensive line of retail bankruptcies as the coronavirus crushes demand for get the job done apparel.
Brooks Brothers, which sells pricier men’s duds, submitted for personal bankruptcy safety in July, as did Ascena Retail Group Inc., the proprietor of Ann Taylor.
Of training course, Men’s Wearhouse — regarded for its commercials featuring charismatic entrepreneur George Zimmer and his tagline “You’re gonna like the way you search. I warranty it.” — was also battling due to the fact ahead of the pandemic took maintain as everyday get the job done wear attained steam. The enterprise was also loaded down with substantial credit card debt from a 2014 acquisition of Jos A. Lender, a merger Zimmer opposed.
Zimmer, who founded Men’s Wearhouse in 1973, was ousted in 2013 reportedly for his intense endeavours to take it non-public.