Tailored Brands Says Bankruptcy ‘Likely’

The corporate, which misplaced $269.9 million within the first quarter, stated it may file within the third quarter.

Tailored Brands stated in 10-Q “it’s probably that we are going to pursue a reorganization below relevant chapter legal guidelines, presumably as quickly as throughout the third quarter of fiscal 2021, which begins on Aug. 2, 2021.” On this situation, shareholders in all probability might be worn out, the corporate stated.

The proprietor of Males’s Wearhouse has “thought-about the projected affect of Covid-19 on our money flows and analyzed our future compliance with the monetary covenants below our ABL Facility, together with an extra discretionary reserve imposed in opposition to our borrowing base, as described in Observe 19, and primarily based on such projections and evaluation, we is not going to stay in compliance with the fastened cost protection ratio covenant below the ABL Facility starting within the fourth quarter of fiscal 2021.”

• The corporate stated it in all probability gained’t make good on a missed curiosity fee of roughly $6.1 million due July 1 on its 2022 notes.
• Administration is exploring options, “together with searching for a restructuring, modification or refinancing of our debt by a non-public restructuring or reorganization below relevant chapter legal guidelines.”
• “Though administration’s projections point out non-compliance with the fastened cost protection ratio starting within the fourth quarter of fiscal 2021, it’s probably that we are going to pursue a reorganization below relevant chapter legal guidelines previous to the incidence of such non-compliance or nicely upfront of such date, presumably as quickly as throughout the third quarter of fiscal 2021. Ought to we reorganize below relevant chapter legal guidelines, there’ll probably not be any worth distributed to our shareholders and our shares may very well be cancelled for no consideration.”