Men’s Wearhouse, which is a subsidiary of Tailored Brands, has missed US $ 6.1 million interest payment – which was due on 1 July 2020.
And this comes immediately after Tailored Brands Inc. gave an indication that it was considering to file Chapter 11.
The 1 July deadline is missed and now the firm has 30 days to make the interest payment before it goes into default.
According to 1 July filing, if the company defaults, it would lead to cross-event of default under company’s term loan facility as well as asset-based revolving credit facility.
However, Tailored Brands made a scheduled interest payment for them on 1 July.
Both Men’s Wearhouse and Tailored Brands have said that it they are not able to arrange more liquidity it may have to file for Chapter 11 or even end all its operations.
Reportedly, the company is closely coordinating with its advisers on its debt.
Earlier last month, the company had spoken about the possibility of bankruptcy after its Q1 sales had gone down by over 60 per cent owing to the pandemic crisis.
In a previous release, Dinesh Lathi, CEO of the company, said that he expects company’s sales to rebuild gradually through 2020.
Tailored Brands, Inc., which owns Men’s Wearhouse and JoS A Bank brands, offers men’s apparels and footwear, among others, and generates revenue of US $ 2.881 billion.