Tailored Brands Inc., the owner of Men’s Wearhouse and Jos. A. Bank, is considering a potential bankruptcy after the coronavirus lockdown kept America’s office workers at home, putting a damper on demand for new suits.
The retailer and its advisers have started reaching out to interested parties about reworking its debts of more than $1 billion, according to people with knowledge of the matter. One option is a Chapter 11 filing, which would allow Tailored Brands to keep some of its stores operating while it seeks to shut weaker locations and satisfy its creditors, the people said. Its shares, which had climbed by as much as 33% on Monday, were down more than 17% after the market close.