To bolster its financial status and let it better compete in a difficult retail climate, Tailored Brands plans to make changes that will lead to a reduction of roughly 20 percent of its corporate positions by the conclusion of fiscal Q2. The omnichannel menswear specialty retailer also said it identified as many as 500 retail locations for possible closure, according to a Tuesday (July 21) announcement.
Tailored Brands also said that Jack Calandra, executive vice president, chief financial officer and treasurer will depart the company as of July 31. For the short haul, the executive’s tasks will be split between Tailored Brands President and CEO Dinesh Lathi and Holly Etlin, an AlixPartners managing director, who has been named to the new role of chief restructuring officer. Etlin has over 30 years of restructuring experience and a “deep expertise in retail” per the announcement.
The company, whose brands include Jos. A. Bank and Men’s Wearhouse, among others, said it has "safely welcomed customers back to 96% of its retail stores in full compliance with CDC and government requirements.”
Lathi said in the announcement, “We have safely reopened almost all of our retail stores and look forward to helping our customers look and feel their best for their moments that matter. 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.”
Tailored Brands said further information will be disclosed to shoppers and affected staffers “as decisions are made.”
The company has roughly 1,400 U.S. and Canadian retail locations. Approximately half of them are Men’s Wearhouse shops. It had stopped rent payments for May and April with many of its locations.
Tailored Brands has been able to have rent deferrals for a significant share of stores, with repayment to start with the beginning of 2021. It had $201 million in unrestricted cash on hand in early June.