Tailored Brands secures 75 million dollars in financing
8 Mar 2021
Men’s Wearhouse owner Tailored Brands has announced 75 million dollars in new financing following its emergence from Chapter 11 bankruptcy late last year.
The financing comprises 50 million dollars of mandatory convertible notes and 25 million dollars in additional senior secured debt, and will provide additional liquidity for the business as it rides out the pandemic and positions itself in a post-Covid market.
Tailored Brands president and CEO Dinesh Lathi said the company is seeing “solid momentum” across its portfolio of brands, and is continuing to advance its key strategic priorities, which include the enhancement of its omnichannel experience and the launch of its Men’s Wearhouse next-gen stores.
“This additional financing further ensures we can continue to keep pace with our plans to come out of the pandemic stronger than ever and strategically positioned to help our customers look and feel their best in the moments that matter,” Lathi said in a release. “We are grateful to our shareholders and lenders for their continued support and confidence as we continue to execute our strategic plan.”
Tailored Brands exited Chapter 11 in December after winning approval for its reorganisation plan by the US Bankruptcy Court for the Southern District of Texas.
The business filed for bankruptcy in August after suffering a significant hit from Covid-19. A month earlier in July, it announced it would be cutting around 20 percent of its corporate workforce and closing around 500 retail stores to mitigate the financial impact of the pandemic.
Under the terms of its approved reorganization, Tailored Brands previously said it will eliminate 686 million dollars of funded debt from its balance sheet.
Image: Men’s Wearhouse, Facebook