Due to the impacts of the COVID-19, the parent company of the retailer Moores is considering the possibility of shelter from its creditors.
The company’s Tailored Brands, which also owns brands Men’s Wearhouse, K&G, and Jos. A. Bank in the United States, is currently analyzing various scenarios to regain its financial health.
The debt of the u.s. reached $ 1.4 billion. The direction would be currently advised by law firm Kirkland & Ellis and investment bank, PJT Partners, according to Bloomberg.
Sales of Tailored Brands, which specializes in clothing for men, are in decline from 2017, for all of the banners. The growth of teleworking due to the pandemic and the fall of the banquets, such as weddings or conferences, would have aggravated the situation.
Last June 10, when the disclosure of an update of the results of the company, the management has not hidden its financial problems.
The company has seen its sales dive of 60.4 % in the first quarter to reach $ 287 million and online sales were down 31.9% compared to the same period in 2019. The difficulties of the company continued into the second quarter.
“If the effects of the pandemic may be prolonged, and that we are not able to increase our liquidity or effectively address our debt situation, we may be forced to reduce or terminate our operations, or put us to the shelter of our creditors,” one can read in public documents.
In order to protect its finances, the company has suspended the payment of its rents for the months of April and may, while the majority of its shops were closed, according to various american media.
Tailored Brands owned, may 2, last, 1445 stores in the United States and in Canada, of which 126 Moores.
Last year, Moores has 25 stores in Quebec, has seen its sales remote from 7.7 % to $ 201 million $. The retailer was founded in 1980 in Ontario.