The owner of the Men’s Wearhouse and Jos. A. Bank announced Monday it is filing for Chapter 11 bankruptcy protection, citing the COVID-19 pandemic for a decline in sales.
“COVID-19 has forced people to stay in,” Tailored Brands said, adding: “Our clothes are better suited for going out. So, we are filing for Chapter 11 protection to help us reorganize and strengthen our business.”
It added that it will “continue to be there to help you look and feel your best in the moments that matter.”
“The unprecedented impact of COVID-19 requires us to further adapt and evolve,” Tailored Brands CEO Dinesh Lathi said in a statement. “Reaching an agreement with our lenders represents a critical milestone toward our goal of becoming a stronger company that has the financial and operational flexibility to compete and win in the rapidly evolving retail environment.”
The firm also owns Moores Clothing for Men and K&G Fashion Superstore.
In July, Tailored Brands said it would shut down 500 locations while it dealt with the effects of the pandemic.
“The coronavirus pandemic has altered the way we live and work. There are fewer in-person meetings, less going out, and postponed wedding celebrations, whereas our clothes are better suited to being out and about. That, in turn, means the need for fewer stores,” the company said on a web page about its new plans.
It continued: “We shared in July that some stores will close as a result and, while we are still making decisions about which stores will be affected, our actions will help us right-size our store fleet. In the meantime, rest assured, the Chapter 11 process includes specific protections that allow us to provide a consistent shopping experience for our customers.”
George Zimmer, who founded the Men’s Wearhouse and was known for his “I guarantee it” catchphrase, was ousted from his position in 2013.
Lord & Taylor, one of America’s oldest department stores, also filed for bankruptcy on Monday. Lord & Taylor, which was sold to the French rental clothing company Le Tote Inc. last year, filed Sunday for bankruptcy protection in the Eastern Court of Virginia.
In an announcement on its website, the company, one of the oldest American department stores, said it was looking for a new owner. Like many retailers, Lord & Taylor was already struggling with the shift to online shopping even before the pandemic struck this spring. Last year, it sold its flagship building on New York’s Fifth Avenue after more than a century in the 11-story building.
The Associated Press contributed to this report.