Men’s Wearhouse owner takes steps to stabilize business
The update helped lift shares 13 percent in extended trading
The coronavirus has hit the retail sector hard, causing retail store closings and causing some names to file for bankruptcy protection.
Tailored Brands, the parent company of Men's Wearhouse and Jos. A. Bank has taken steps to stabilize its business.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The company accessed $310 million of additional borrowings from its credit facility, took aggressive actions to reduce and defer operating expenses, capital expenditures and inventory purchases.
That included temporary base salary reductions for officers and employees with a salary of $100,000 or more ranging from 10 percent to 50 percent.
JCPENNEY SHUTTING DOWN 154 STORES AFTER CORONAVIRUS-DRIVEN BANKRUPTCY
Tailored Brands President and CEO Dinesh Lathi said "While many of these actions were difficult, such as furloughing/temporarily laying off more than 95% of our employees and implementing salary reductions, they were necessary given the impact of the disruptions from the COVID-19 pandemic on our business."
The update helped lift shares 13 percent in extended trading.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| tlrd | NO DATA AVAILABLE | - | - | - |
The company closed all stores and on March 17 and three days later closed all e-commerce fulfillment centers in the U.S. and Canada.
On May 7 the Company began to open stores with enhanced safety protocols, and had 634 stores open as of June 5.
PIER 1 ANNOUNCES CLOSING DATE, WILL LIQUIDATE STORES AMID BANKRUPTCY PROCEEDINGS
Early second quarter-to-date results through June 5, has Men’s Wearhouse sales down about 65 percent and Jos. A. Bank down about 78 percent.
Total e-commerce sales, including rental services, are down about 32 percent.
CLICK HERE TO READ MORE ON FOX BUSINESS
This follows a Bloomberg report from earlier in the week that a bankruptcy filing was an option being considered.