Match retailer Men’s Wearhouse submitted for personal bankruptcy on Sunday as the coronavirus has stored thousands and thousands of office environment staff at residence and in lounge trousers.
Father or mother company Customized Manufacturers, which also owns Jos A. Lender, submitted for Chapter eleven security in Houston, Texas, following achieving a deal with a the greater part of its loan companies to retain one,400 suppliers open up.
The deal gives the battling retailer, which also owns Moores Clothes for Guys and K&G Manner Superstore, $500 million debtor-in-possession funding to retain the suppliers open up as it seeks to cut down its credit card debt by $630 million.
“The unparalleled effects of COVID-19 needs us to even further adapt and evolve,” Customized Manufacturers CEO Dinesh Lathi stated in a assertion. “Reaching an agreement with our loan companies represents a vital milestone toward our aim of starting to be a much better company that has the fiscal and operational overall flexibility to contend and get in the rapidly evolving retail natural environment.”
Customized Manufacturers hinted at issues in July when it stated it prepared to shut 500 suppliers and cut down its workforce by about twenty p.c. Its filing is the hottest in a prolonged line of retail bankruptcies as the coronavirus crushes demand from customers for get the job done clothing.
Brooks Brothers, which sells pricier men’s duds, submitted for personal bankruptcy security in July, as did Ascena Retail Team Inc., the operator of Ann Taylor.
Of training course, Men’s Wearhouse — known for its commercials that includes charismatic entrepreneur George Zimmer and his tagline “You’re gonna like the way you search. I warranty it.” — was also battling considering that in advance of the pandemic took maintain as relaxed get the job done use obtained steam. The company was also loaded down with major 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 efforts to acquire it personal.