Tailored Brands Inc, the parent company of Men’s Wearhouse, is reportedly contemplating filing for bankruptcy in the third quarter of this year due to the ongoing impact of the Covid-19 crisis on its sales. The company has been hit hard by a reduction in liquidity and has failed to make an interest payment, raising doubts about its ability to continue operating within the next year. In an effort to tackle these challenges, Tailored Brands had previously announced plans to gradually close up to 500 stores and reduce its corporate workforce by 20%. This move was made in response to a decline in sales and the revelation that the company was no longer in compliance with an NYSE-listing criteria.

Unsurprisingly, the news of a potential bankruptcy filing has had a detrimental effect on Tailored Brands’ stock. After the announcement, shares tumbled by 9% to just 54 cents during extended trading. Throughout the year, the company’s shares have already fallen by a staggering 86%. The Covid-19 pandemic has further aggravated Tailored Brands’ struggles, as it forced apparel retailers to rely solely on online operations and furlough employees. These additional challenges have compounded the company’s existing difficulties in competing with fast-fashion brands.

The pandemic has had a significant impact on the retail industry as a whole, leading to financial distress for numerous companies due to store closures and a decrease in consumer spending. Tailored Brands is just one of many businesses that have had to seriously consider bankruptcy as a means of managing their financial obligations.

Although the future of Tailored Brands remains uncertain, there is hope that the company will be able to weather the storm and find a path to recovery. As the retail industry continues to adapt to the evolving landscape, it will be crucial for companies like Tailored Brands to explore new strategies and business models in order to stay competitive in the post-pandemic world.

For more information on the challenges faced by Tailored Brands and its potential bankruptcy filing, please visit these useful links:

1. Reuters: Tailored Brands considers bankruptcy as COVID-19 jolts suit sellers

2. Business Insider: Men’s Wearhouse-owner Tailored Brands furloughed over 90% of its office staff amid coronavirus pandemic