BUSINESS + ECONOMY

Men’s Wearhouse and Jos. A. Bank are closing hundreds of stores

Jul 21, 2020, 2:03 PM

men's wearhouse tailored brands...

A Men's Wearhouse clothing store is seen in New York on Tuesday, June 16, 2015. Tailored Brands, formerly Men's Wearhouse, announced that is will be closing approximately 250 stores including some Jos A. Bank stores which it acquired in 2014. (Photo by Richard Levine/Corbis via Getty Images)

(Photo by Richard Levine/Corbis via Getty Images)

(CNN) — Tailored Brands, which owns suit sellers Men’s Wearhouse and Jos. A. Bank, is shuttering hundreds of stores and drastically reducing its corporate workforce as the coronavirus pandemic continues to decimate the retail industry.

The company has identified 500 stores for closures and said it’s cutting 20% of its corporate positions in hopes of strengthening its “financial position and enable it to compete more effectively in the challenging retail environment,” according to a release. The company has around 1,500 stores in the United States, with about half operating under the Men’s Wearhouse name.

“Unfortunately, due to the Covid-19 pandemic and its significant impact on our business, further actions are needed to help us strengthen our financial position so we can navigate our current realities,” said Tailored Brands CEO Dinesh Lathi.

The store closures and resulting layoffs will cost the company $6 million in severance payments and other termination costs, Tailored Brands said. The stores will close “over time” and it has not “yet quantified the expense savings and costs related to potential store closures.”

Shares of Tailored soared nearly 10% following the news.

Tailored was reportedly nearing bankruptcy and talking with advisers for the past few months. One analyst previously told CNN Business that the odds of it filing for bankruptcy eventually are “pretty high” because of reduced demand for dressier clothes as much of the country continues to work from home. Many working-from-home employees have opted for far more relaxed looks of T-shirts and sweatpants rather than pinstripe suits and custom shirts.

Although most of its stores have reopened, sales have been declining. For the week ended June 5, sales at locations open for at least one week fell 65% at Men’s Wearhouse. They were down 78% at Jos. A. Bank and 40% at K&G. Sales declined 60% in its fiscal first quarter, which ended May 2. All of its stores were closed for about half the quarter, and its online operations halted for two weeks in March.

Tailored is the second menswear company in July to hit trouble. Earlier, Brooks Brothers filed for bankruptcy, citing the pandemic and men giving up dressy clothes.

GlobalData Retail said in a recent note that year-over-year sales of men’s formal clothing fell by 74% between April and June.

“While this deterioration will ease over time, demand will remain suppressed for the rest of 2020 and well into 2021 as office working, business meetings, and socializing are all reduced,” the firm said.

–CNN Business’ Chris Isidore contributed to this report.

The-CNN-Wire
™ & © 2020 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Business + Economy

1040 form shown, tax refund season is here...

Sam Herrera

Should you spend or save your tax refund?

Filing your taxes can be a headache but figuring out how to spend your tax refund might be a headache in its own right.

12 hours ago

Single-family homes under construction in Saratoga Springs are pictured on Tuesday, July 19, 2022....

Adam Small

2023 saw far fewer building permits in Utah, report says

The Ogden-Clearfield metro area had the biggest percentage decline in building permits year-over-year, nose-diving by 34%.

13 hours ago

the aster building in utah, affordable housing apartment...

Don Brinkerhoff

New study says Utah is the most affordable state — and why that’s not necessarily true

A new report from USA TODAY says Utah is the most affordable state in the nation. This comes just days after another report ranked Utah among some of the least affordable places to live.

14 hours ago

Doughnuts are displayed for sale at a Krispy Kreme store on February 13, in Austin, Texas. Krispy K...

Ramishah Maruf, CNN

Krispy Kreme doughnuts are coming to McDonald’s

The Krispy Kreme doughnuts will be available nationwide at participating restaurants by the end of 2026, after a phased rollout beginning later this year.

21 hours ago

bottles of prescription medication at a desk. 16.2% of Utahns are unable to get the prescription me...

Tammy Kikuchi and Emma Keddington

Utah ranks second in the nation for prescription medication shortages

The hardest prescription medication to get is for ADHD, cancer and high blood pressure.

2 days ago

Utah third least affordable homes...

Adam Small

New report ranks Utah as one of the least affordable places to buy a home in the U.S.

Utah is the third least affordable place in the nation for homebuying thanks to soaring home prices according to a report.

3 days ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

Men’s Wearhouse and Jos. A. Bank are closing hundreds of stores