Tailored Brands to reduce workforce, close around 500 stores
21 Jul 2020
Tailored Brands, Inc. is implementing a series of operating and organizational changes due to the unprecedented and industry-wide business disruptions resulting from the coronavirus pandemic. The actions include elimination of approximately 20 percent of its corporate positions by the end of the fiscal second quarter and closure of around 500 retail stores.
Commenting on the announcement, Tailored Brands President and CEO Dinesh Lathi said in a statement: “Unfortunately, due to the Covid-19 pandemic and its significant impact on our business, further actions are needed to help us strengthen our financial position so we can navigate our current realities. It is always difficult to eliminate jobs and say farewell to our friends and colleagues. I want to thank our teammates affected by these changes as well as those who continue to help us meet the challenges currently facing our industry and who remain dedicated to serving our customers.”
Tailored Brands CFO to leave the company by July end
The company also announced that Jack Calandra, executive vice president, chief financial officer and treasurer, will leave Tailored Brands as of July 31, 2020. The company added that Calandra’s responsibilities will be divided between Lathi and Holly Etlin, a Managing Director at AlixPartners who has been appointed to the newly created role of Chief Restructuring Officer, reporting directly to Lathi. Etlin brings more than 30 years of restructuring experience and a deep expertise in retail, and has been working closely with the executive team and board of directors as an advisor since late March.
“Jack and I have been discussing a transition and, with a full appreciation of both the challenges to be solved and the opportunities to be realized in the next phase of the company’s journey, we both agree this is the right time for a change. He leaves behind a strong finance team that, with Holly’s support and leadership, will help us continue to build a strong future for our company,” added Lathi.
Tailored Brands has welcomed customers back to 96 percent of its retail stores. At the same time, the Company has re-evaluated the forecasted profitability and strategic value of every store in its fleet relative to current and anticipated trends in consumer demand and has identified up to 500 stores for closure over time.