TLRD - Men's Wearhouse Jos. A. Bank Owner Tailored Brands Expects to File for Bankruptcy
Tailored Brands (NYSE: TLRD) shares were down by about 31% as of 11:53 a.m. EDT Tuesday after the company noted in an SEC filing that "it is likely that we will pursue a reorganization under applicable bankruptcy laws, possibly as soon as during the third quarter of fiscal 2020."
The owner of the Men's Wearhouse and Jos. A. Bank chains is in a tough place. With workplace trends moving steadily in the direction of more casual office attire, many formal-wear and business-wear brands have faced hard times. Tailored Brands acquired Jos. A. Bank back in 2014 for $1.8 billion. The timing and scale of the deal were questionable, as the company took on debt to acquire a competitor in an industry that was undergoing significant changes.
Despite the merger, Tailored Brands' revenues have declined annually since 2016, and its bottom-line performance has been sporadic.