Tailored Brands Announces $75 Million in New Financing to Continue to Advance Strategic Plans
FREMONT, Calif.--(BUSINESS WIRE)-- Tailored Brands, Inc. (the “Company”) today announced the closing of a $75 million investment by a group of existing shareholders and lenders. The financing consists of $50 million of mandatorily convertible notes and $25 million in additional senior secured debt. This transaction will provide additional liquidity for the Company as it continues to advance its strategic plans to ensure it is best positioned to meet the evolving needs of its customers following the COVID-19 pandemic, and demonstrates the continued commitment of its investors to the long-term success of the Company.
“We are seeing solid momentum across all of our brands and continue to advance key strategic priorities, including enhancing our omni-channel experience, launching our Men’s Wearhouse Next-Gen stores, and evolving our merchandise assortment via new and expanding partnerships with Michael Strahan, Vera Wang and Alternative Apparel,” said Tailored Brands President and Chief Executive Officer Dinesh Lathi. “This additional financing further ensures we can continue to keep pace with our plans to come out of the pandemic stronger than ever and strategically positioned to help our customers look and feel their best in the moments that matter. We are grateful to our shareholders and lenders for their continued support and confidence as we continue to execute our strategic plan.”
About Tailored Brands, Inc.
Tailored Brands is a leading omnichannel specialty retailer of menswear, including suits, formalwear and a broad selection of business casual offerings. We help our customers look and feel their best by delivering personalized products and services through our convenient network of stores and e-commerce sites. Our brands include Men's Wearhouse, Jos. A. Bank, Moores Clothing for Men and K&G Fashion Superstore.
This press release contains forward-looking information, including the Company’s statements regarding its strengthened capital structure and the Company’s ability to execute on its strategic initiatives. In addition, words such as “will,” “expects,” “anticipates,” “envisions,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “guidance,” “may,” “projections,” and “business outlook,” variations of such words and similar expressions are intended to identify such forward-looking statements. The forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements that we make herein are not guarantees of future performance and actual results may differ materially from those in such forward-looking statements as a result of various factors. Factors that might cause or contribute to such differences include, but are not limited to: risks related to the effectiveness of the restructuring and strategic activities completed during and subsequent to the Company’s Chapter 11 process and any additional strategies that the Company may employ to address its business including its liquidity and capital resources; the effects of the COVID-19 pandemic and uncertainties about its depth and duration, including the health and well-being of our employees and customers, temporary or permanent store closures, additional periods of increases in the number of COVID-19 cases, the rate of vaccinations, increases in the unemployment rate, furlough or temporary layoffs of our employees, social distancing measures and changes in consumer spending behaviors; actions or inactions by governmental entities; domestic and international macroeconomic conditions; inflation or deflation; the Company’s ability to attract, motivate and retain key personnel; success, or lack thereof, in formulating or executing our internal strategies and operating plans; cost reduction initiatives and revenue enhancement strategies; changes in demand for our retail clothing or rental products, including changes in apparel trends and changing consumer preferences; market trends in the retail or rental business; customer confidence and spending patterns; changes in traffic trends in our stores; customer acceptance of our merchandise strategies, including custom clothing and polished casual attire; performance issues with key suppliers; disruptions in our supply chain; severe weather; regional or national civil unrest or acts of civil disobedience; public health crises, including COVID-19; foreign currency fluctuations; government export and import policies, including the enactment of duties or tariffs; advertising or marketing activities of competitors; the impact of cybersecurity threats or data breaches; legal proceedings and the impact of climate change.
Source: Tailored Brands, Inc.
Released March 5, 2021