The parent company of Men’s Wearhouse and JoS. A. Bank announced hundreds of store closures and a round of layoffs as its business continues to reel from the CCP virus pandemic.
Tailored Brands, which also owns Moores Clothing for Men and K&G, announced that it would eliminate about 20 percent of its corporate workforce by the end of the second quarter.
The firm’s CEO placed the blame for the closures on the COVID-19 pandemic and shutdowns that were initiated to curb the virus’s spread.
“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,” said Tailored Brands President and CEO Dinesh Lathi in a news release.
About 500 stores will be shut down across the United States, the firm said. It did not give a timetable.
“While today’s announcement is a difficult one, we are confident these are the right next steps to protect our business and position us to more effectively compete in today’s environment,” he said.
According to a public filing, Tailored Brands had about 19,300 employees and 1,450 stores, reported USA Today.
“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,” Lathi said.
The chain did not provide a list of stores that would be shuttered.
The CCP (Chinese Communist Party) virus pandemic has created harsh conditions for brick-and-mortar retail operations.
JCPenney, Brooks Brothers, Nordstrom, Pier 1 Imports, and Lucky Brand have announced stores closures during the pandemic.
Last week, mall staple Heritage Brands said it would shut down about 162 stores across the United States. The firm also owns Izod, Olga, Warner’s, and Van Heusen.
It will also cut about 12 percent of its corporate workforce across its Calvin Klein, Tommy Hilfiger, Heritage Brand segments, according to a filing with the Securities and Exchange Commission.
“The structural changes occurring in the North American retail landscape have required us to take a hard look at our North American operations and identify where we can optimize costs across our business model,” said Manny Chirico, chairman and CEO of PVH in a statement. “As a result, we are making the incredibly difficult decisions to close our Heritage Brands Retail business and eliminate a significant number of positions throughout our North American organization to align with the lower revenue base.”