American clothing retailer Tailored Brands could exit from Chapter 11 bankruptcy as early as this month.
The retailer has won the court approval in its efforts to restructure in Chapter 11 which it had filed back in August 2020.
Also Read: Finally Tailored Brands succumbs to the pandemic; files Chapter 11
As per the restructuring plan, the fashion retailer would be eliminating the US $ 686 million of funded debt and turn the ownership to lenders and other creditors.
Much before the pandemic, the retailer had been struggling to survive. The onset of the pandemic led to temporary store closures that finally hit its Q1 sales.
Notably, the Q1 revenue fell by over 60 per cent, which eventually led to permanent shutting down of around 500 stores.
The court’s approval has now given the retailer the much-needed breathing space.
Once the retailer exits bankruptcy, it will have US $ 430 million asset-based loan facility in addition to having an exit term loan of US $ 365 million.
Besides, it will have a cash of US $ 75 million from new debt facility to help the retailer in its strategic initiatives.
Meanwhile, the retailer also has implemented new buy online as well as pick up in store, amongst other initiatives, to better serve its customers in these tough times.
The retailer, which owns Men’s Wearhouse and Jos A. Bank, generated revenue of US $ 2.881 billion in 2019.
