Earlier this month, renowned American fashion label Men’s Wearhouse had missed to pay US $ 6.1 million interest – thereby triggering a 30-day grace period, which expires later this month.
Also Read: Men’s Wearhouse skips US $ 6.1 million interest payment; possibility of bankruptcy
As the retailer is struggling to survive, its parent company Tailored Brands has already started initiating efforts to stave off a complete collapse by announcing the axing of 20 per cent of its corporate jobs.
The decision is being seen as part of company’s restructuring process. And this just doesn’t include slashing of corporate jobs; the retailer also has plans to close around 500 stores.
Though the retailer has selected the 500 stores to be shut down, it didn’t share the locations.
Add to all this, Jack Calandra, working as CFO, will be leaving the company on 31 July following which her responsibilities will be shared between company’s CEO and Holly Etlin, who has been appointed to a new chief restructuring role for the parent company.
With 20 per cent job cuts, Tailored Brands hopes to record a pretax charge of approximately US $ 6 million in Q2 for severance payments and other costs. However, the retailer is as yet not clear how much it can save from store closures.
Notably, the stock of Tailored Brands has slumped by more than 83 per cent this year. It’s been a tough year so far, and It will be interesting to observe how next few months turn out for the struggling retailer.
Tailored Brands, Inc., known for its apparels and footwear, generates US $ 2.881 billion.
