500 Men’s Wearhouse locations to close, layoffs to follow

In response to the challenges brought on by the COVID-19 pandemic, Tailored Brands, the parent company of Men’s Wearhouse, has decided to permanently close 500 retail stores under the Men’s Wearhouse brand. The specific locations affected by the closures have not been disclosed.

As part of this restructuring, Tailored Brands will also be reducing its corporate workforce by about 20% by the end of the second quarter. In addition to this, company CFO Jack Calandra will be departing at the end of July. Following his departure, his responsibilities will be shared between the current CEO, Dinesh Lathi, and Holly Etlin, a managing director at AlixPartners who has been given a formal role in restructuring Tailored Brands.

CEO Dinesh Lathi expressed the need for these actions in light of the financial challenges posed by the ongoing pandemic. He acknowledged the difficulty of the decisions but emphasized that they are necessary to strengthen the company’s financial position and enhance its competitiveness in the current economic climate.

Through these restructuring efforts, Tailored Brands anticipates incurring approximately $6 million in pretax charges in the second quarter, primarily related to severance payments and other termination costs. The financial impact of the store closures on the company’s overall revenue has not been estimated yet.