Tailored Brands 'likely' to file for bankruptcy in third quarter

Men's Wearhouse owner Tailored Brands has announced it is 'likely' it will file for bankruptcy in the third quarter as it grapples with the impact of Covid-19.

The company said the impact of the pandemic has “raised substantial doubt about [its] ability to continue as a going concern within one year of the date that [its] condensed consolidated financial statements are issued.”

It said: “It is likely that we will pursue a reorganization under applicable bankruptcy laws prior to the occurrence of such noncompliance or well in advance of such date, possibly as soon as during the third quarter of fiscal 2020.”

The company announced earlier this month it would be cutting around 20 percent of its corporate workforce and closing around 500 retail stores to mitigate the financial impact of the Covid-19 pandemic.

Photo credit: Men’s Wearhouse, Facebook