Judge Allows Men's Wearhouse Parent Company To Exit 100 Leases
The parent company of Men's Wearhouse has been given a huge break in surviving its bankruptcy filing.
Tailored Brands, which also owns Jos A. Bank and Men's Wearhouse and Tux, was allowed last week to walk away from 100 leases by bankruptcy judge Marvin Isgur as part of its Chapter 11 case, CoStar reports. Among the leases that Tailored Brands will be rejecting are several locations in high-profile urban areas.
Jos A. Bank will be allowed to break its lease terms for its store at the Trinity Building, or 111 Broadway near the World Trade Center in New York. Tailored Brands will also be pulling out of multiple downtown stores in Chicago and Houston, as well as a store in Washington, D.C.'s Union Station, CoStar reports.
Tailored Brands operated over 1,200 U.S. locations when it filed for Chapter 11 bankruptcy protection on Aug. 2, and had closed at least 278 locations as of Aug. 28. At least 90 more stores were slated for closure by the end of August, not including the 100 that were subject to the most recent ruling, Kirkland & Ellis attorney Aparna Yenamandra, who represents Tailored Brands, told CoStar.
All told, Tailored Brands told Isgur that it expects to close 500 locations as part of its bankruptcy reorganization. The company has not yet filed the paperwork that would tell its landlords, which include virtually all of the largest national retail owners, how much unpaid rent it will pay as part of the settlement.
The Men's Wearhouse and Jos A. Bank brands are expected to survive the restructuring, as Tailored Brands has reached settlements with most of its senior lenders, according to court filings reported by CoStar.
The company said it will focus on expanding its e-commerce business and releasing more products that fit with more casual workplace trends to bounce back.