NewsMen’s Wearhouse owner Tailored Brands Inc. is seeking a lifeline to help it stay afloat less than three months after it emerged from bankruptcy protection.
Tailored Brands has “severely underperformed” compared to the projections in its Chapter 11 reorganization plan and needs roughly $75 million by the beginning of March to avoid a default, according to court papers.
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Tailored Brands is still “worse off than most” distressed retailers, experiencing “a double whammy” of both reduced foot traffic to stores and dwindling demand for business and formal attire, Patrick Collins of law firm Farrell Fritz said in an interview. He represents landlords in the company’s bankruptcy, and said their equity stake in the reorganized company “could be worthless.”
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