The closures will be accompanied by a round of layoffs.
In another blow to the retail business sector caused by the coronavirus pandemic, Tailored Brands, parent company to Men’s Wearhouse, announced that they would be closing down 500 of the chain’s retail locations in the near future. The exact locations that would be shuttered were not divulged.
In addition to the store closures, Tailored Brands will be laying off approximately 20% of its corporate staff by the end of its Q2. Along with the layoffs, company CFO Jack Calandra will be leaving the company at the end of July. After he leaves, Calandra’s duties will be split between the company’s current CEO, Dinesh Lathi, and AlixPartners managing director, Holly Etlin. Etlin has been appointed to a formal chief restructuring role in Tailored Brands.
“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,” Lathi said.
“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,” he added.
Through these layoffs, Tailored Brands expects to pick up approximately $6 million in pretax charges in Q2, all attributed to severance payments and general termination costs. An estimate has not yet been made on how much money the company will recoup from closing the Men’s Wearhouse locations.