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Tailored Brands files for bankruptcy

Christian Fernsby ▼ | August 3, 2020
Tailored Brands and certain of its subsidiaries announced that it has entered into a restructuring support agreement (“RSA”) with more than 75% of its senior lenders.
Tailored Brands
Bankruptcy   Tailored Brands
The RSA outlines agreed-upon terms for a pre arranged financial restructuring plan that is expected to reduce the Company’s funded debt by at least $630 million and provide increased financial flexibility to enable Tailored Brands to continue its focus on generating profitable growth and driving value for customers and stakeholders.

Topics: Tailored Brands

The Company has received commitments for $500 million in debtor in possession (“DIP”) financing from its existing revolving credit facility lenders.

Following Court approval, this financing, combined with cash on hand (including approximately $90 million of restricted cash that the Consenting Term Loan Lenders have agreed to unrestrict and make available to the Company subject to certain terms and conditions), and cash flow generated by the Company’s ongoing operations, is expected to be sufficient to meet the Company’s operational and restructuring needs.

The RSA further contemplates that the DIP financing will convert to a $400 million revolving credit facility from existing lenders upon the Company’s emergence from Chapter 11. In addition to the financing relief described above, Tailored Brands has filed customary motions with the Court intended to allow the Company to operate in the ordinary course.


 

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