July 27, 2020 / 10:04 PM / 13 days ago

Tailored Brands may file for bankruptcy in third quarter

July 27 (Reuters) - Tailored Brands Inc said on Monday it could consider filing for bankruptcy as soon as in the third quarter, as the COVID-19 crisis continues to pummel sales.

The Men's Wearhouse owner said a reduction in liquidity and failure to make an interest payment have raised doubts about its ability to continue as a going concern within a year. (bit.ly/302l5QI)

Earlier this month, Houston, Texas-based Tailored Brands had said that it had identified up to 500 stores for closure over time and expected to cut 20% of its corporate workforce. The apparel retailer had said it was no longer in compliance with an NYSE-listing criteria.

Shares of the company, which also owns men’s clothing store Jos. A. Bank, were down 9% at 54 cents in extended trading. They have fallen about 86% this year.

The coronavirus pandemic, which forced apparel retailers to limit operations to online and furlough employees, has added to Tailored Brands’ woes, as it had already been struggling with competition from fast-fashion brands. (Reporting by Praveen Paramasivam in Bengaluru; Editing by Maju Samuel)

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