After American clothing retailer Tailored Brands’ exit from Chapter 11 last December, it is now seeking US $ 75 million emergency loan from existing lender and its largest equity holder.
Also Read: Tailored Brands emerges from bankruptcy
The retailer, which owns Men’s Wearhouse, has sought the emergency loan following the unexpected slump in its business in December and early this year, which has put it at the risk of default.
This was confirmed by a trustee for a group of unsecured creditors who are equity holders of the retailer. Notably, any default could force the retailer to revamp again or liquidate.
While speaking to media, a spokesperson of the retailer said that the objective to seek the loan was to add to its working capital buffer. This it believes will help Tailored Brands execute its strategic plan better.
However, to emerge from Chapter 11 and then to be in this financial trouble is something that cannot be overlooked.
In fact the trustee, as per media reports, said that the retailer has severely underperformed against the financial projections that its bankruptcy restructuring plan talked about.
The retailer and its advisers have, reportedly, reached out to 31 potential finance providers and are seeking US $ 75 million loan this month itself.
Watch this space for more on the same!
