Men's Wearhouse owner to cut 20% of corporate staff, close 500 stores
Coronavirus had significant impact on its retail business, Tailored Brands CEO said
The company that owns Men’s Wearhouse announced Tuesday it’s laying off hundreds of employees with store closures underway as a result of revenue losses from the coronavirus pandemic.
The parent company of Men's Wearhouse plans to close 500 stores and reduce its corporate workforce by 20 percent. (Andrew Burton/Getty Images)
Tailored Brands said 20 percent of its employees will be let go by the end of the fiscal second quarter. The company also said up to 500 retail stores would face “potential closure,” as it aims to focus on its e-commerce business.
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“Unfortunately, due to the COVID-19 pandemic and its significant impact on our business, further actions are needed to help us strengthen our financial position so we can navigate our current realities,” Tailored Brands President and CEO Dinesh Lathi said in a statement.
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“While today’s announcement is a difficult one, we are confident these are the right next steps to protect our business and position us to more effectively compete in today’s environment,” Lathi added.
The company also announced that its executive vice president and chief financial officer, Jack Calandra, is leaving the company as of July 31.
In June, Tailored Brands reportedly considered a bankruptcy filing and was also seeking out ways to reorganize its debt, which was said to be more than $1 billion dollars.
Tailored Brands did not immediately return FOX Business' request for comment.
The news comes as a number of retailers faced financial devastation as a result of coronavirus shutdowns. J.C. Penney, Neiman Marcus and Pier 1 Imports filed for bankruptcy this year.