AlixPartners is serving as restructuring advisor to Tailored Brands in the company’s plan of reorganization under its Chapter 11 filing.
Under the terms of the plan, Tailored Brands will eliminate $686 million of funded debt from its balance sheet. The capital structure of the reorganized company is expected to consist of a $430 million ABL facility, a $365 million exit term loan and $75 million of cash from a new debt facility to support ongoing operations and strategic initiatives.
Kirkland & Ellis is serving as legal advisor and PJT Partners is serving as financial advisor.
“We are extremely pleased to have reached this milestone. Over the past three months, we have not only continued to advance steadily through this financial restructuring but also implemented new buy online, pick up in store and contactless payment technology to better serve our customers during the pandemic; further curated our assortments to make them more shoppable and relevant; opened our first next generation store in Shenandoah, Texas; developed new partnerships; and continued to advance important diversity, equity and inclusion initiatives, consistent with our corporate values. These and other actions taken while in Chapter 11 are the continuation of a strategic transformation that started well before COVID-19 and will position us to compete and succeed for the long term,” Dinesh Lathi, president and CEO of Tailored Brands, said. “Our deep appreciation goes out to our employees, customers, vendors, landlords and lenders for the ongoing support they have shown us. We look forward to entering the peak holiday season with this process behind us and to being positioned to grow our business by providing customers with selection, convenience, service and value across all our brands.”
Tailored Brands expects to emerge from Chapter 11 protection by the end of November after satisfying the customary conditions to the effectiveness of the plan.
