Moores Clothing for Men, which has a location in Prince George, is the latest retail chain to file for Chapter 11 bankruptcy protection amid the COVID-19 pandemic.
Tailored Brands, which also owns Moores, Men’s Wearhouse and Jos. A. Bank stores across North America, said on Sunday (Aug. 2) it'll continue to operate most stores during restructuring and expected to reduce its funded debt by $630 million.
COVID-19 restrictions have severely limited weddings and office work since March, hitting the clothing retail and rental sectors particularly hard.
It's unknown if Prince George's location will stay open as the company said online, in a statement, it is still deciding what stores will close permanently.
Dinesh Lathi, chief executive of Tailored Brands, tells clients the pandemic has altered the way people live and work.
“It means fewer in-person meetings, wedding celebrations and special events. Simply put, people are staying home more, and our clothes are better suited to being out and about,” Lathi said.
He said the company is 'making major shifts' by creating a leaner structure to adapt to the realities of today’s retail environment.
“In July, we announced some store closures. However, we will continue to have stores across Canada operating as usual. Nothing about our decision to seek Chapter 11 protection changes that.”
Tailored Brands was struggling even before the pandemic lockdowns smothered any demand for suits or ties.
It wasn’t alone.
Last month, Brooks Brothers, the 200-year-old company that dressed nearly every U.S. president, filed for bankruptcy protection. Its rival, Barneys New York, is being dismantled after filing for bankruptcy last year.
Dozens of retailers, big and small, have filed for Chapter 11 protection this year. The pace through the first half of 2020 far exceeds the number of retail bankruptcies for all of last year. About two dozen stores have sought bankruptcy protection since the pandemic started.
Others include J. Crew, J.C. Penney, Neiman Marcus, Stage Stores, and Ascena Retail Group, which owns Lane Bryant in addition to Ann Taylor.
- with files from Colin Dacre and Darron Kloster, Castanet