mens wearhouse bankruptcy

Another company that moved through the bankruptcy process quickly is Men's Wearhouse and Jos. A. Bank parent Tailored Brands, which filed for. Men's Wearhouse files for bankruptcy. National Coronavirus Coverage. by: Ronnie Das A. Bank, Moores Clothing for Men, and K&G brands. Tailored Brands ended fiscal 2019 with $1.1 billion in long-term debt on the balance sheet and almost $750 million in operating lease. mens wearhouse bankruptcy

Mens wearhouse bankruptcy -

Men’s Wearhouse Owner Tailored Brands 'Likely' to File Bankruptcy

Tailored Brands  (TLRD) - Get Tailored Brands, Inc. Report, the owner of the Men’s Wearhouse and JoS. A. Bank brands, is likely to pursue chapter 11 bankruptcy protection as soon as its fiscal third quarter amid plunges sales related to the coronavirus pandemic and economic collapse.

In a filing made with the Securities and Exchange Commission on Monday, the Houston-based company said it was “… likely that we will pursue a reorganization under applicable bankruptcy laws, possibly as soon as during the third quarter of fiscal 2020, which begins on Aug. 2, 2020.”

Specifically, the company said in the filing that it doesn’t have enough cash on hand or expected cash to pay its creditors under its asset-backed loan facility beginning in the fourth quarter of fiscal 2020.

In this scenario, shareholders probably will be wiped out, the company said.

Management is exploring alternatives, “including seeking a restructuring, amendment or refinancing of our debt through a private restructuring or reorganization under applicable bankruptcy laws,” the retailer said.

Tailored Brands earlier this month said it would cut about 20% of its corporate positions by the end of the second quarter and close as many as 500 stores due to "the unprecedented and industrywide business disruptions resulting from the coronavirus pandemic," resulting in a $6 million second-quarter charge.

In addition, the company announced that Chief Financial Officer Jack Calandra was leaving the company as of July 31.

To be sure, Tailored Brands had been struggling financially well before recent events. The company in 2014 brought on AlixPartners to advise on its merger between Jos. A. Bank and Men's Wearhouse.

AlixPartners is a New York consultant known for its work in turning around companies. It has advised on some of the largest Chapter 11 reorganizations including General Motors  (GM) - Get General Motors Company (GM) Report, Kmart and Enron Corp.

As of Feb. 1, Tailored Brands had about 13,700 employees and operated 1,450 stores under the Men's Wearhouse, Men's Wearhouse and Tux, Jos. A. Bank, and K&G brands.

Tailored Brands joins a growing list of retailers that are seeking bankruptcy protection, not only amid plunging demand related to to the pandemic and rapid economic about-face but also due to drastic changes in what consumers spend money on, specifically work office-geared attire. 

Tailored Brands stock was trading at 43 cents a share on Tuesday. 

Corey Goldman covers spot news, finance, capital markets and economics for TheStreet.

Источник: https://www.thestreet.com

As owner Tailored Brands moves forward with bankruptcy proceedings, Men’s Wearhouse is set to permanently shut down dozens of stores across the country.

Court documents showed 100 locations in the first round of closures for the company, which also owns the Jos. A. Bank, Moores Clothing for Men and K&G Fashion Superstore brands. Included in that list is the shutdown of more than 30 Men’s Wearhouse outposts.

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According to its Chapter 11 filing on Sunday, Tailored Brands had roughly 19,300 employees at the start of February. It operates 1,274 stores in the United States and 125 stores in Canada.

Today, the Houston-based company received court approval to access $500 million in debtor-in-possession financing, as well as tap the cash collateral of both its existing revolving credit facility and term loan lenders. The court also authorized Tailored Brands to pay employees as usual, along with their health benefits, plus honor customer gift cards, rental reservations and custom clothing orders. It can maintain existing loyalty programs and continue to pay vendor partners for goods provided after the date of the filing.

Tailored Brands’ bankruptcy came less than two weeks after it identified up to 500 brick-and-mortar units for “potential” closures and revealed plans to cut about 20% of its corporate workforce by the end of the fiscal second quarter. In addition, the retail group said it would reduce and adjust its store organization and supply chain infrastructure.

Here, a list of the Men’s Wearhouse stores that are expected to shutter:

California

  • Greenbrae: 2048 Redwood Highway

  • Redwood City: 2505 El Camino Real

  • Lake Forest: 23700 El Toro Rd. Suite A

  • West Covina: 1420 Plaza Dr.

  • Redlands: 27530 W. Lugonia Ave.

Connecticut

Florida

  • Ocala: 3100 SW College Rd. Suite 328

  • West Palm Beach: 4256 Okeechobee Blvd.

  • Sunrise: 12605A W. Sunrise Blvd.

Kansas

  • Lenexa: 9320 Marshall Dr.

Illinois

  • Oak Lawn: 4954 W. 95th St.

  • Wilmette: 3232 Lake Ave Suite 190

Kentucky

  • Paducah: 5101 Hinkleville Rd. Suite 530

Maryland

  • Towson: 825 Dulaney Valley Rd. Suite 4340

Massachusetts

  • Cambridge: 100 Cambridgeside Pl Spc W225

  • Boston: 376 Boylston St.

  • Newton: 215 Needham St.

  • Westwood: 215 University Ave.

  • Worcester: 424 Belmont St.

New York

  • New York: 1219 3rd Ave.

  • New York: 1 Park Ave.

  • Yorktown Heights: 650 Lee Blvd. Suite J03A

North Carolina

  • Gastonia: 246 N. New Hope Rd.

  • Raleigh: 4325 Glenwood Ave. #239

Oregon

  • Beaverton: 11915 SW Canyon Rd. Suite A

Pennsylvania

  • Pittsburgh: 6521 Robinson Center Dr.

  • Stowe: 245 Upland Sq. Dr.

Rhode Island

  • Warwick: 685 Bald Hill Rd.

Tennessee

  • Collierville: 10210 Collierville Rd. Suite 101

Texas

  • Houston: 11081 Westheimer Rd. Suite A

  • Plano: 2401 Preston Rd.

Virginia

  • Richmond: 9101 W. Broad St.

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Источник: https://www.yahoo.com/now/men-wearhouse-stores-closing-good-133024699.html

Tailored Brands

American men's apparel company

Tailored Brands, Inc. is an American retail holding company for various men's apparel stores, including the Men's Wearhouse and Jos. A. Bank brands.[3] The company is headquartered in Houston, Texas, with additional corporate offices in Fremont, California.[4]

History and operations[edit]

Tailored Brands, Inc. was created in January 2016 when Men's Wearhouse transitioned to a holding company model and changed its ticker symbol from MW to TLRD.[3]

Men's Wearhouse in Saugus, Massachusetts

Founded in 1973, by George Zimmer as a retail men's clothing store, the business had grown to 100 stores when it held an IPO in 1992 raising $13M.[5] Zimmer turned Men's Wearhouse into an industry consolidator, acquiring numerous competitors throughout his tenure leading the firm. Today, as Tailored Brands, the company operates Men's Wearhouse, Men's Wearhouse & Tux, K&G Superstores (an off-price retail chain), Moores Clothing for Men (a Canadian chain of men's clothing stores), Twin Hill Corporate clothing, and Jos A. Bank. In 1997, it purchased, then liquidated, the bankrupt Kuppenheimer chain.[6]

Men's Wearhouse notably ran television and radio commercials featuring Zimmer, and the oft-repeated slogan, "You're going to like the way you look; I guarantee it."[7] According to Business Week, Men's Wearhouse targets the common man, with "the neatly displayed clothes in Zimmer's stores [being] designed to cater to the unpretentious guy who wants to do as little as possible to maintain his wardrobe."[8]

On November 17, 2006, Men's Wearhouse acquired After Hours Formalwear, a clothier specializing in black tie formalwear, from Federated Department Stores, the parent company of department store company Macy's. After Hours Formalwear was originally rebranded MW Tux, but has now been rolled up under the Men's Wearhouse brand. The formalwear group within Men's Wearhouse specializes in tuxedo rentals for men and boys for black tie events.

In 2009, Men's Wearhouse became a major sponsor of the United Football League and continued to sponsor the league in 2010. In that same year, the company acquired the trade and assets of Alexandra plc, which was in administration and Dimensions Corporatewear to develop its presence in Europe.[citation needed]

In 2013, the company acquired the Joseph Abboud brand to its lineup.[9]

"You're gonna like the way you look. I guarantee it."

On June 19, 2013, the company dismissed founder and Executive Chairman George Zimmer for undisclosed reasons.[10] The company later stated that Zimmer was dismissed due to "difficulty accepting the fact that Men's Wearhouse is a public company with an independent board of directors and that he has not been the chief executive officer for two years. He advocated for significant changes that would enable him to regain control."[11]

Acquisition of Jos. A. Bank[edit]

In October 2013, Men's Wearhouse received a $2.4 billion acquisition offer from smaller rival Jos. A. Bank.[12] Men's Wearhouse countered with an offer of its own, which sparked a five-month takeover battle between the two menswear retailers. After Jos. A. Bank rejected the initial counteroffer, Men's Wearhouse announced that it would increase its all-cash bid if Jos. A. Bank revealed limited financial information and entered into negotiations.[13] In an attempt to dilute shares and become too large for Men's Wearhouse to purchase, Jos. A. Bank agreed to acquire the men's outdoor clothing company Eddie Bauer for $825 million.[14] Men's Wearhouse immediately responded by filing a lawsuit to block the proposed acquisition, which was expedited by Delaware Judge J. Travis Laster."[15] The lawsuit required Jos. A. Bank to disclose documents relating to the deal and prevented it from closing the deal without giving Men's Wearhouse 10 days' notice.

On November 12, 2013, Ricky Sandler, CEO of Eminence Capital LLC, published a letter he sent to Men's Wearhouse CEO Douglas Ewert discussing a merger with Joseph A. Bank Clothiers Inc.[16] On November 15, 2013, Joseph A. Bank Clothiers Inc. withdrew "its all-cash proposal to purchase Men's Wearhouse for $48 a share after its self-imposed November 14 deadline".[17]

In March 2014, Men's Wearhouse reached an agreement to acquire Jos. A. Bank for $1.8 billion, on the condition that it dropped its acquisition bid for Eddie Bauer.[18] A Federal Trade Commission investigation into the deal concluded in May 2014, concluding that the merger was "not likely to harm consumers"; the completion of this investigation was required for the merger to go forward.[19]

Tailored Brands filed for bankruptcy due to the coronavirus pandemic and its 1.4 billion dollar long term debt load on August 2, 2020,[20] after announcing a few weeks earlier that they would close around 500 locations.[21]

References[edit]

  1. ^ abcdefg"Inline XBRL Viewer".
  2. ^ ab"Tailored Brands". Fortune. Retrieved June 15, 2020.
  3. ^ abMen's Wearhouse Announces New Holding Company: Tailored Brands, Inc.
  4. ^"company-information". tailoredbrands.com/company-information. Retrieved June 18, 2019.
  5. ^The History of Men's Wearhouse
  6. ^"Men's Wearhouse to liquidate remaining Kuppenheimer stores", Atlanta Business Chronicle, March 4, 1997.
  7. ^"Zimmer no longer there to". tribunedigital-chicagotribune. Retrieved May 12, 2016.
  8. ^Lee, Louise. "Spiffing Up Men's Wearhouse", BusinessWeek, November 1, 2004.
  9. ^Men's Wearhouse to Acquire Iconic American Designer Brand
  10. ^"Men's Wearhouse Fires Founder; He Fires Back". June 19, 2013.
  11. ^Kaplan, David. "Men's Wearhouse explains why it canned Zimmer." Houston Chronicle. June 25, 2013. Retrieved on June 25, 2013.
  12. ^"Men's Wearhouse rejects $2.4 billion bid from Jos. A. Bank". CNN Money. October 9, 2013. Retrieved April 28, 2014.
  13. ^"Men's Wearhouse Adds Fiery Lawsuit, More Money to Takeover Fight". Bloomberg.com. Bloomberg Businessweek. February 24, 2014. Retrieved April 28, 2014.
  14. ^"Jos. A. Bank agrees to buy Eddie Bauer". CNN Money. February 14, 2014. Retrieved April 28, 2014.
  15. ^"Judge Expedites Men's Wearhouse Lawsuit". New York Times Dealbook. Retrieved April 28, 2014.
  16. ^Karr, Arnold J. (November 12, 2013). "Men's Wearhouse Open to Jos. A. Bank Talks, Investor Says". WWD. Retrieved November 12, 2013.
  17. ^Palmieri, Jean E. (November 17, 2013). "Jos. A. Bank Withdraws Bid for Men's Wearhouse – WWD". WWD. Retrieved May 12, 2016.
  18. ^Jayakumar, Amrita (March 11, 2014). "Men's Wearhouse finally buys Jos. A. Bank". The Washington Post.
  19. ^Briggs, James (May 30, 2014). "FTC gives green light to $1.8B Jos. A. Bank, Men's Wearhouse merger". Baltimore Business Journal.
  20. ^"Men's Wearhouse, Jos. A. Banks parent Tailored Brands files for bankruptcy: Report".
  21. ^"Tailored Brands is closing 500 stores".

External links[edit]

Источник: https://en.wikipedia.org/wiki/Tailored_Brands

Men’s Wearhouse files for bankruptcy as men sport sweats over suits

Suit retailer Men’s Wearhouse filed for bankruptcy on Sunday as the coronavirus has kept millions of office workers at home and in lounge pants.

Parent company Tailored Brands, which also owns Jos A. Bank, filed for Chapter 11 protection in Houston, Texas, after reaching a deal with a majority of its lenders to keep 1,400 stores open.

The deal gives the struggling retailer, which also owns Moores Clothing for Men and K&G Fashion Superstore, $500 million debtor-in-possession financing to keep the stores open as it seeks to reduce its debt by $630 million.

“The unprecedented impact of COVID-19 requires us to further adapt and evolve,” Tailored Brands CEO Dinesh Lathi said in a statement. “Reaching an agreement with our lenders represents a critical milestone toward our goal of becoming a stronger company that has the financial and operational flexibility to compete and win in the rapidly evolving retail environment.”

Tailored Brands hinted at trouble in July when it said it planned to close 500 stores and reduce its workforce by about 20 percent. Its filing is the latest in a long line of retail bankruptcies as the coronavirus crushes demand for work apparel.

Brooks Brothers, which sells pricier men’s duds, filed for bankruptcy protection in July, as did Ascena Retail Group Inc., the owner of Ann Taylor.

Of course, Men’s Wearhouse — known for its commercials featuring charismatic entrepreneur George Zimmer and his tagline “You’re gonna like the way you look. I guarantee it.” — was also struggling since before the pandemic took hold as casual work wear gained steam. The company was also loaded down with significant debt from a 2014 acquisition of Jos A. Bank, a merger Zimmer opposed.

Zimmer, who founded Men’s Wearhouse in 1973, was ousted in 2013 reportedly for his aggressive efforts to take it private.

Источник: https://nypost.com/2020/08/03/mens-wearhouse-files-for-bankruptcy-amid-coronavirus/

The rise and fall of Men's Wearhouse, the menswear chain that promised customers for five decades 'You're going to like the way you look — I guarantee it'

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mens wearhouse coronavirus.JPG
REUTERS/Brendan McDermid
  • Tailored Brands — the parent company of Men's Wearhouse, Jos. A. Bank, Moores, and K&G Fashion Superstore — filed for Chapter 11 bankruptcy protection on Monday, citing the impact of the coronavirus on the decline of suits and formal wear. 
  • However, back when the world was still dressing up and going out, Men's Wearhouse has been a go-to destination to help Americans suit up for nearly 50 years. 
  • Founded in 1973 by George Zimmer, the company rose to prominence in part thanks to its well-known commercials starring the founder himself delivering his trademark line: "You're going to like the way you look: I guarantee it." 
  • We took a look at the rise and fall of Men's Wearhouse over the decades.
  • Visit Business Insider's homepage for more stories.

For nearly 50 years, Men's Wearhouse was synonymous with its tailored bargain suits and television commercials promising its customers: "You're going to like the way you look — I guarantee it."

However, with most of the country still homebound amid the coronavirus outbreak, suits and formalwear have gone by the wayside and left the fate of Men's Wearhouse in the balance. On Monday, Tailored Brands — the parent company of Men's Wearhouse, Jos. A. Bank, Moores, and K&G Fashion Superstore —filed for Chapter 11 bankruptcy protection with plans to immediately close 100 stores across the company. 

In a note on its website, Tailored Brands attributed the decision to the pandemic, which in addition to temporarily shuttering stores has also shifted consumer demand toward athletic wear and loungewear. 

"The coronavirus pandemic has altered the way we live and work. There are fewer in-person meetings, less going out, and postponed wedding celebrations, whereas our clothes are better suited to being out and about. That, in turn, means the need for fewer stores," the company said. "When the world is ready to dress up and go out again, we will be there to serve them."

Back when the world was dressing up and going out, Men's Wearhouse was there to help Americans suit up. Founded in 1973 by George Zimmer, the company grew to become one of the largest menswear chains in the country, even it hit a series of challenges in recent years, including the unceremonious ousting of Zimmer, the onset of the retail apocalypse, and the coronavirus. 

We took a closer look at the rise and fall of Men's Wearhouse over the years. 

Men's Wearhouse was founded in 1973 by George Zimmer in Houston, Texas.

mens wearhouse.JPG
REUTERS/Rick Wilking

After graduating from college, Zimmer worked for his father's struggling raincoat business, ultimately taking the knowledge he gleaned as a manufacturing representative to create Men's Wearhouse. 

Source: Funding Universe

Zimmer wanted to create a go-to destination for menswear featuring "a full selection of suits, sport coats, sportswear and accessories from top designers." He found quick success at selling them for bargain prices compared to department store competitors.

mens wearhouse suits.JPG
REUTERS/Mario Anzuoni

Source: Tailored Brands

 

 

Today, Men's Wearhouse carries a wide array of brands ranging such as Calvin Klein and Tommy Hilfiger, as well as exclusive offerings from collections like Awearness by Kenneth Cole and Black by Vera Wang.

men's wearhouse ties.JPG
REUTERS/Mario Anzuoni

Source: Tailored Brands

Over the next two decades, Men's Wearhouse rapidly expanded across the country, growing from 12 stores in 1981 to 25 in 1985 and then continuing to multiply. On the heels of its success, the company went public in 1992.

men's wearhouse santa monica.JPG
REUTERS/Lucy Nicholson

Zimmer managed to carve a niche in men's fashion, transforming Men's Wearhouse "from a single store into a multibillion-dollar empire," wrote Inc's Tom Foster. 

 

After moving the company from Texas to California in the mid-1980s, Zimmer opened a sprawling corporate headquarters and training facility in 1995, developing a multi-day program for new employees called "Suits University."

MW man.JPG
REUTERS/Brendan McDermid

Source: Tailored Brands

In the second half of the 1990s, Zimmer turned to acquisitions to build his customer base, starting with the brands Kuppenheimer and Joseph & Feiss in 1996. In 1997, he created the "Value Priced Clothing" division with two new lower-priced chains — C&R Clothiers and NAL.

men's wearhouse bag.JPG
REUTERS/Brendan McDermid

Source: Funding Universe

By 1998, the company opened its first store in New York City. The next year, Men's Wearhouse continued its acquisition spree by adding K&G Men's Center and the Canadian-based Moores Retail Group.

mens wearhouse 2
Andrew Burton/Getty Images

Source: Funding Universe

Источник: https://www.businessinsider.com/the-rise-and-fall-of-mens-warehouse-history-photos-2020-8

Mens wearhouse bankruptcy -

Men’s Wearhouse files for bankruptcy as men sport sweats over suits

Suit retailer Men’s Wearhouse filed for bankruptcy on Sunday as the coronavirus has kept millions of office workers at home and in lounge pants.

Parent company Tailored Brands, which also owns Jos A. Bank, filed for Chapter 11 protection in Houston, Texas, after reaching a deal with a majority of its lenders to keep 1,400 stores open.

The deal gives the struggling retailer, which also owns Moores Clothing for Men and K&G Fashion Superstore, $500 million debtor-in-possession financing to keep the stores open as it seeks to reduce its debt by $630 million.

“The unprecedented impact of COVID-19 requires us to further adapt and evolve,” Tailored Brands CEO Dinesh Lathi said in a statement. “Reaching an agreement with our lenders represents a critical milestone toward our goal of becoming a stronger company that has the financial and operational flexibility to compete and win in the rapidly evolving retail environment.”

Tailored Brands hinted at trouble in July when it said it planned to close 500 stores and reduce its workforce by about 20 percent. Its filing is the latest in a long line of retail bankruptcies as the coronavirus crushes demand for work apparel.

Brooks Brothers, which sells pricier men’s duds, filed for bankruptcy protection in July, as did Ascena Retail Group Inc., the owner of Ann Taylor.

Of course, Men’s Wearhouse — known for its commercials featuring charismatic entrepreneur George Zimmer and his tagline “You’re gonna like the way you look. I guarantee it.” — was also struggling since before the pandemic took hold as casual work wear gained steam. The company was also loaded down with significant debt from a 2014 acquisition of Jos A. Bank, a merger Zimmer opposed.

Zimmer, who founded Men’s Wearhouse in 1973, was ousted in 2013 reportedly for his aggressive efforts to take it private.

Источник: https://nypost.com/2020/08/03/mens-wearhouse-files-for-bankruptcy-amid-coronavirus/

On August 2, 2020, Tailored Brands Inc. — better known as Men’s Wearhouse — and 17 affiliated entities (the “debtors”) filed for chapter 11 bankruptcy in the Southern District of Texas. COVID-19 was the straw that broke the camel’s back: the debtors had been struggling for years, with revenues declining by ~5.6% over the previous two years and unprofitable leases straining resources. Clearly, the #retailapocalypse had not been kind.

The debtors used the bankruptcy to consummate a meaningful balance sheet restructuring. This was the pre-petition cap stack:

On November 13, 2020, the bankruptcy court entered an order confirming the debtors’ fifth amended plan of reorganization. Pursuant to the plan, the holders of term loan paper exchanged their debt for $365mm in take-back term loan paper and 92.5% of the reorganized equity (subject to dilution). This result reflects the debtors’ stated valuation, which pegged the enterprise value at a mid-point of $850mm. So, the senior notes got cleared out as did approximately 40% of the term loan and, in total, the restructuring de-levered the balance sheet by hundreds of millions of dollars. The post-reorg cap stack is:

  • $430mm ABL

  • $75 Exit New Money Term Loan

  • $400mm Take-back Term loan

The remaining 7.5% equity went to a liquidating trust established for the benefit of general unsecured creditors. Post-dilution, the equity position was ~6.7%.

The term lender group who took control of the company is a who’s who of funds* but Silver Point Capital LP holds the largest position: just prior to the plan getting confirmed, Silver Point reported an upsized term loan position of $183.3mm, reflecting bullishness about the opportunity.

Query whether they’re currently second guessing.

On February 26, 2021, the trustee for the aforementioned liquidating general unsecured creditor trust posted a notice “of certain material developments” to the beneficiaries of the trust. It’s a whopper. He might as well just say that the debtors’ projections were complete and utter dogsh*t. He wrote:

In December 2020 and early 2021, the Company experienced unanticipated declines in its business, largely as a result of the ongoing pandemic. The Company has severely underperformed against the financial projections upon which its Chapter 11 plan of reorganization was based. Those projections continue to be at risk in view of current critical assumptions for near term performance which are based on the anticipated resumption of social gatherings such as proms and weddings as well as the return of office workers towards 2019 (pre-pandemic) levels beginning this spring. (emphasis in original)

Rut roh. 😳

Still, the projections weren’t exactly rosy. The company projected that: (i) FY20 revenue would be 50-60% lower than FY19 ($2.88b) and (ii) FY21 revenue would be 25-30% lower than FY19. It also assumed selling margins would increase 1-2% in ‘21 and then remain flat because of pricing pressure and casualization trends. But they do reflect optimism that revenues, gross profit and EBITDA would all ascend starting in 2021.

Clearly that’s not the case. Instead, this “risk factor” has come to life:

Consequently, the company concluded that it needed $75mm in bridge financing to avoid quite possibly the most egregious violation of the PETITION“Two-Year Rule” in recent memory …

Nfl Season 2019 No GIF by NFL

…and an insanely embarrassing Chapter 22 filing.

The company, therefore, pounded the pavement to solicit interest from dozens of parties but, ultimately, the company and its bankers landed back at Silver Point’s doorstep. Silver Point agreed to “…provide $25 million pari passu to the existing priority term loan and $50 million secured on a subordinated basis. The $50 million loan is converted to new common stock at a price of $1.00 per share within three years.

This is an obviously negative for the equity in the trust. Indeed, “if the $50 million loan were to convert upon transaction close, the Trust’s estimated fully diluted ownership of the Company’s common stock will be reduced from the current 6.7% to approximately 0.8%.” 😬Not accounting for the Silver Point transaction, the trust’s 562,500 shares have an estimated value of ~$703k at $1.25/share.

The trustee, therefore, reviewed the company’s assessment and performed its own independent analysis. The findings weren’t good. Per the trustee:

Based on the information received from the Company’s advisors, the Trustee believes the Company is in need of additional financing in order to survive the pandemic. The Trustee believes that certain losses experienced in recent months may be permanent, and do not just reflect a temporary shift in demand. The Trustee believes … that without the proposed financing the Company could be in default of certain loan covenants under its senior asset based lending facility, leading to cross defaults under its other debt instruments. This would likely result in another restructuring process, putting the Company at a risk of potential liquidation, in which case the Trust’s common stock could become worthless. (emphasis added).

After seeing the financials, the trustee be like…

will smith run GIF

He then entered into an agreement to sell the 562,500 shares for $3.3mm (or $5.86/share) and get the hell out of dodge. The alternative, he says, was to hold on to the stock, challenge the proposed Silver Point, and start suing the f*ck out of people with the hope of achieving a better outcome than the $3.3mm — something he dubbed “speculative and uncertain.

As we write this, additional states are announcing moves to re-open. That cannot happen soon enough for the likes of Men’s Wearhouse.

*Other funds involved include, among numerous others, CIFC, Intermediate Capital Group, PGIM, Voya Alternative Asset Management, ALCOF II NUBT LP, Carlson Capital LP, First Eagle Alternative Credit LLC, The Guardian Life Insurance Company of America, Marble Point Credit Management LLC, MJX Asset Management LLC, ZAIS Group LLC, and Benefit Street Partners.

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⚡️New Chapter 30 Filing - Just Energy Group Inc. ($JE)⚡️

Hold on. Before one of our student readers goes running for his/her copy of the bankruptcy code, let us spare you: there is no such thing as a Chapter 30 filing. We’re being flip AF here. Just Energy Group Inc. ($JE), retail energy providers of electricity and natural gas, filed a Chapter 15 bankruptcy case in the Southern District of Texas yesterday (March 9) in support of a concomitant CCAA filing in Ontario Canada. This is the second Chapter 15 filing from JE in less than a year.

The first 15 consummated in October 2020: the process afforded the company with the opportunity to shed some debt and push out some loan maturities. It “…entered 2021 on strong financial and operational footing.” The recent Texas storm put an end to that. We discussed the horror show that this created in Sunday’s a$$-kicking Members’-only briefing, “💥Is Texas F*cked?💥.”

In brief, the historic storm created a surge of demand for electricity as Texas’ residents struggled to stay warm. As demand surged, the Public Utility Commission of Texas (“PUCT”) instructed the Electric Reliability Council of Texas, Inc. (“ERCOT”) to jack up prices to meet demand. ERCOT obliged setting rates at the maximum rate of $9,000/MWh and maintained it there for four straight days as the weather persisted. Compounding matters, “…the price for ancillary services, which is impacted by the $9,000/MWh price for electricity, reached previously unseen levels, at times exceeding $25,000 per MWh.” Now the piper is looking to get paid. JE was f*cked.

In the last week, ERCOT sent JE multiple invoices totaling over $280mm, demanding payment within days. As you can imagine, this created a wee bit of a liquidity issue — an issue compounded by demands from business counterparties getting nervous and making collateral and payment demands. 😬

Among many other initiatives, JE went into problem-solving mode. It reached out to PUCT, entreating PUCT to order ERCOT to deviate from SOP regarding settlements, collateral obligations and invoice payments (see tweet above). PUCT refused.

So then JE went into triage mode. It paid tens of millions to ERCOT in the ordinary course while also (i) speaking with potential DIP lenders, (ii) engaging its credit facility lenders to ensure that it would have access to its cash management systems and be able to use available liquidity to operate in the ordinary course of business, and (iii) dialoging with major counterparties like Shell and BP to confirm that they’d support the business during the horrific time. Ultimately, JE was able to secure a commitment for $125mm in DIP financing so that it could remit payment to ERCOT and protect the value of the company.

The purpose of the Chapter 15 filing is to obtain recognition of the foreign main proceeding in Canada, impose the automatic stay, and move forward to tap the DIP financing.

♵New Chapter 11 Bankruptcy Filing - CarbonLite Holdings LLC♵

Los Angeles-based CarbonLite Holdings LLC and ten affiliates (collectively, the “debtors”) filed for chapter 11 bankruptcy in the District of Delaware. The company articulates a clear bull case but, for now, capital intensive investments and COVID-19 derailed the debtors’ trajectory.

The debtors operate two business segments. First, they process post-consumer recycled polyethylene terephthalate plastic products (“rPET”), leveraging $200mm worth of investment to build their three recycling facilities in California, Dallas and, most recently, Reading Pennsylvania (the “Recycling Business”). The Recycling Business sources rPET from 1,000 pound bales of used plastic bottles or flakes, which comes from plastic in bales that has already been processed and refined. Currently, the company processes 200mm pounds of rPET pellets per year which translates into 3.8b used bottles a year. Once, the Reading facility comes online — which is projected to occur next month — the debtors will be able to process an additional 85mm pounds of rPET pellets. End users include Coca-Cola Co. ($KO), PepsiCo Inc. ($PEP), Nestlé Water ($NSRGY) and Niagara Water. The latter two make appearances as the top two creditors on the debtors’ “Top 40” general unsecured creditors list.

In 2016, the debtors expanded via acquisition. Pinnpack Packaging LLC gave the debtors the ability to product PET and rPET packaging products like tubs, bowls, domes and clamshells for food packaging. The Recycling Business sells rPET pellets directly to PinnPack for production.

The debtors state the bull case as follows:

The Company is poised to play a leading role in the growing environmental sustainability movement. By diverting recyclable PET plastic from the general waste stream and converting it to high-quality reusable products—which are, in turn, used in numerous manufacturing cycles—the Company is at the forefront of this movement. In 2020, California Governor Gavin Newsom signed AB 793 into law, the nation’s first mandatory recycled content bill. Under the new law, plastic beverage containers covered by California’s container redemption program will have to contain at least 15% recycled plastic by 2022, 25% by 2025, and 50% by 2030. Further, many of the world’s largest beverage companies— including several of the Company’s customers—have announced their commitment to increase use of rPET in their packaging over the next decade. As a result, industry estimates project that the total rPET market for bottle production will skyrocket from 550 million pounds in 2019 to more than 1.9 billion pounds by 2025. As the only independent PET recycler of scale, the Company is therefore well-positioned for incredible growth.

The financials don’t mirror the optimism:

On a consolidated basis, for the year ended 2019, the Company generated negative EBITDA of $52.3 million and net losses of $70.4 million. For the eleven months ended November 30, 2020, on a consolidated basis, the Company generated negative EBITDA of $15.0 million (unaudited) and net losses of $45.8 million (unaudited).

Clearly there are things to fix here.

First, operationally, this thing has issues. There’s, like, a maestrom of sh*t as the California and Texas facilities have operated at suboptimal levels, diminishing revenue potential and crushing margins. Some shite customer contracts don’t help either. Texas also apparently sucks at optimizing recycling.* ⚡️SHOCKER⚡️

Second, COVID-19 obviously didn’t help. The new Reading facility hasn’t been able to ramp up to full capacity. Technicians needed to get it there were unable to come to the US due to international travel restrictions.

These factors sparked some serious liquidity issues, triggering defaults under the debtors pre-petition term credit agreement and the indentures governing the issuance of municipal bonds in PA and TX. The debtors’ capital structure consists of:**

  • a $7.79mm ABL;

  • $99.36mm of term loans;

  • ~$20mm in subordinated notes;

  • municipal bonds (TX) of $45.765mm; and

  • municipal bonds (PA) of $71mm.

The debtors intend to use the bankruptcy process to (i) get themselves access to some much-needed dinero and (ii) sell the assets. The debtors have a commitment for $15mm of new money secured by the TX assets and a $75mm DIP component ($25mm new money, the rest a roll-up) secured by the PA assets. Both loans are at 12% and feature 3% commitment fees.

Meanwhile, the debtors have no stalking horse purchaser at the time of filing. According to their first day papers, however, there are at least nine potential parties dialoguing with the debtors’ investment bankers about servicing as the stalking horse bidder. Clearly there are folks out there buying into the bull case.

Given the enthusiasm, we highly suggest the bankers find a way to prevent the potential buyers from listening to this interview with company CEO Leon Farahnik:

While his enthusiasm for what he’s built and the potential environmental benefit is commendable, he may want to lay off on, to paraphrase, the “this is the hardest business I’ve ever attempted talk” after describing a forty year track record of business-building and entrepreneurship.

Just saying. 😳

*Per the debtors:
Additionally, since the state of Texas does not have point of sale deposits paid on plastic bottles when purchased, the Bales used by the Dallas Facility consist of “curbside” bales which contain less usable materials, have more contaminants, require additional processing times, and have much lower yields than recycled bales from material recycling facilities, such as those used by the Riverside Facility.
**There are other ancillary obligations. We’d be remiss, however, if we didn’t highlight that this is yet another case of debtors availing themselves of PPP money ($7.285mm) and filing for bankruptcy anyway.

😎 Notice of Appearance: Max Frumes, Co-Author of the New Book, "The Caesars Palace Coup: How a Billionaire Brawl Over the Famous Casino Exposed the Power and Greed of Wall Street"😎

This week we welcome Max Frumes, co-author (along with The Financial TimesSujeet Indap) of the new book, “The Caesars Palace Coup: How a Billionaire Brawl Over the Famous Casino Exposed the Power and Greed of Wall Street.”

PETITION: Hi Max. Thanks for joining us. Let’s cut right to it: you’re in a room in front of 50,000 people who have an interest in private equity and/or restructuring. Why should they care about this story? Give us the elevator pitch.

Max: “If you’re in that crowd, Caesars is THE seminal moment in PE and restructuring. Everything that came before – Michael Milken, the GFC, the mega-LBO, the distressed debt boom – culminated in the fight over Caesars. Everything that’s come after – getting “J. Screwed”, creditor-on-creditor violence, corporate governance games, extreme liability management in the time of coronavirus – can be traced back to Caesars.”

PETITION: For our readers who were either too busy to follow the Caesars situation in real-time or weren’t yet focused on distressed investing, give us the rapid fire version of who the top winners and losers were and, in one sentence, why. Feel free to bullet point it.

Max: “In this case, Appaloosa, Elliott and Oaktree can claim decisive victory over Apollo. While basically every distressed investor did well because the company turned around, those three funds drove the battles that resulted in a court-appointed examiner finding as much as $5 billion worth of credible claims of fraudulent transfers and corporate governance misdeeds that tipped the case. Just those three funds profited in the billions, whereas Apollo and TPG lost their entire initial equity checks. David Tepper not long after the case ended paid a record price for the Carolina Panthers, coincidentally or not.

Ironically, long-term, Apollo might have the last laugh. What others saw as financial shenanigans that crossed the line over and over, LPs saw as a PE firm able and willing to go to all lengths to save an investment. Apollo raised a record $25 billion PE fund shortly after the case. Apollo’s point-men on Caesars are ascendent with David Sambur now the co-head of private equity and Marc Rowan soon to be CEO. What’s more, Apollo is back on the Vegas strip, just last week announcing a deal to buy the Venetian – with the help of the REIT created out of the Caesars bankruptcy.”

PETITION: This bit made us laugh out loud:

“But now, on September 23, 2016, [Jim] Millstein was five years removed from this stint as a Washington insider [serving as Chief Restructuring Officer of the United States]. He had set up his own firm, Millstein & Co., to capitalize on his sterling reputation and experience. However, he had not fully appreciated just how nasty the restructuring world had become in his absence. After having the power of the US Treasury Department behind him for the better part of two years, he now found himself being mistreated by ex-Ivy League jocks almost half his age.”

Care to expound upon this state of affairs?

Max: “There is a ton of money in the distressed asset class relative to the number of good opportunities so it should not be surprising that tempers are short. And while stars rise fast on Wall Street, sometimes judgement and maturity do not advance as quickly as raw horsepower, which Jim Millstein, the Caesars ringmaster, found out the hard way.”

PETITION. Purportedly “independent” directors were very much a part of this story. In what respect to you believe this case affected the use of independent directors in subsequent restructuring situations? Are you surprised to see some of the same players cycling around?

Max: “Totally shocked (I’m not shocked). Caesars provided the perfect test case for what happens when you use an independent director versus when you don’t, regardless of how “ugly” a deal is: Out of all the aggressive pre-petition transactions perpetrated by Apollo, the one the bankruptcy examiner liked the least, he assigned no liability to whatsoever almost entirely due to the fact that newly appointed independent directors signed off. From then on, law firms have figured out how and when to parachute in "independent" directors to cleanse messy transactions. Everybody by this point is in on the joke.”

PETITION. Put yourself in the shoes of an MBA student. If you’re considering interviewing with a large private equity shop, what’s your main takeaway from the book? Then do the same exercise for a third year law student looking to get into big law.

Max: “The key takeaway for both the business and the law students should be just how interconnected the two are once you get to the big leagues. The distressed investment theses in Caesars required weighting probable versus possible legal outcomes in addition to understanding the underlying business, not to mention the skill needed to whip up a precise cap table. And the best lawyers in the case understood the dollars that hinged around each minute legal fight. Deep down, however, I hope students take away that they should just spend a few years in big law or finance before finding their true calling as a journalist.”

PETITION: Creditor-on-creditor violence has obviously been a hot topic lately — something you quickly mention at the end of the book (referring to J.Crew and Serta Simmons, specifically). Whether it’s TriMark USA, Revlon Inc. ($REV), Tupperware Corporation ($TUP), Transocean Ltd. ($RIG), or Boardriders, market participants are getting buried alive. We point out that the volume of shady-cum-combative deals always seems to increase when there isn’t a ton of distressed activity out there and funds are scratching and clawing for returns. Are there any recent situations that have piqued your interest lately and why? In what way, if at all, do they give you PTSD after spending four years writing this book? Is there one, specifically, you’d love to write about?

Max: “Love the question, and my team at LevFin Insights has been in the weeds on each of those deals. What is interesting about this world is how the same sets of funds and the lawyers and bankers all end up on different sides making arguments that they complained about in the case before. Apollo was the sponsor in Caesars but is a creditor in Serta Simmons and AMC. Oaktree, in orchestrating the priming deals in TriMark and Boardriders, was even called out for acting like Apollo. AMC may be the most fun one of late because of the crazy Reddit fireworks that helped keep the company out of bankruptcy.”

PETITION: We’d be remiss if we didn’t acknowledge the small “Notes and Sources” section at the very end of the book. You and Sujeet expressly call out Paul Weiss for their antics as you both worked on this project. You write:

Paul, Weiss, after repeatedly ignoring our inquiries in 2019, eventually agreed to only respond to written questions. The set of limited responses it sent back to us in December 2019 was almost immediately followed by a remarkable letter that demanded that we turn over our manuscript as well as a list of Paul, Weiss sources that they believed we had approached outside of official channels. The letter went on to accuse us of acting in bad faith and culminated with a threat to sue us for defamation (all well before a first draft of this book existed).

You continued:

We share these events to underscore the strong feelings that underlie the Caesars story and to demonstrate how the news media continues to face undue harassment from powerful forces, like Paul, Weiss, for simply attempting to do its job.

Do you have anything else to add to this now that the book is out?

Max: “Intimidation and bullying do work sometimes when powerful forces are trying to silence underfunded news outlets and journalists. So first, support good journalism (especially investigative work done by places like ProPublica and Reveal). But more importantly, I believe those powerful forces are better served by not fighting it; don’t obfuscate, own mistakes, right wrongs, and vie to be better if, in the light of day, those things turn out to be ugly.”

PETITION: When you guys set off to write this book was there a model for you? What prior book, if any, served as your inspiration here?

Max: “I mean both of us marvel at James Stewart, especially the Den of Thieves. And like a couple of guys shooting fadeaways in the driveway thinking “Kobe!”, greats we tried to emulate included Connie Bruck’s Predator’s Ball, Bethany McLean and Peter Elkind’s Smartest Guys in the Room, and Bryan Burrough and John Helyar’s Barbarians at the Gate (which our book is frequently next to on Amazon, which is kind of exciting!).”

PETITION: Thanks Max. Good luck to you and Sujeet with the book.

Share

📚Resources📚

We have updated our robust compilation of a$$-kicking resources covering restructuring, tech, finance, investing, economics and disruption. You can find the full compilation here.

📤Notice📤

Nick Welch (Managing Director) joined BDO Consulting Group from B. Riley Financial.

🙌Congratulations to:🙌

H.I.G. Bayside Capital for closing the new H.I.G. Bayside Loan Opportunity Fund VI with aggregate capital commitments of $1.4b.

💰New Opportunities💰

Plante Moran is seeking a senior restructuring leader to join our growing practice and help us continue providing our clients with the best in class service. This role will focus primarily on practice development activities and operational and financial restructuring engagements to identify business problems and design workable solutions. We tackle our client’s difficult issues and solve their complex problems. For more information, please visit here or contact us at [email protected]

Looking for quality people? PETITION lands in the inbox of 1000s of bankers, advisors, lawyers, investors and others every week. Email us at [email protected] to learn about posting your opportunities with us.

Nothing in this email is intended to serve as financial or legal advice. Do your own research, you lazy rascals.

Источник: https://petition.substack.com/p/menswearhouse

Tailored Brands

American men's apparel company

Tailored Brands, Inc. is an American retail holding company for various men's apparel stores, including the Men's Wearhouse and Jos. A. Bank brands.[3] The company is headquartered in Houston, Texas, with additional corporate offices in Fremont, California.[4]

History and operations[edit]

Tailored Brands, Inc. was created in January 2016 when Men's Wearhouse transitioned to a holding company model and changed its ticker symbol from MW to TLRD.[3]

Men's Wearhouse in Saugus, Massachusetts

Founded in 1973, by George Zimmer as a retail men's clothing store, the business had grown to 100 stores when it held an IPO in 1992 raising $13M.[5] Zimmer turned Men's Wearhouse into an industry consolidator, acquiring numerous competitors throughout his tenure leading the firm. Today, as Tailored Brands, the company operates Men's Wearhouse, Men's Wearhouse & Tux, K&G Superstores (an off-price retail chain), Moores Clothing for Men (a Canadian chain of men's clothing stores), Twin Hill Corporate clothing, and Jos A. Bank. In 1997, it purchased, then liquidated, the bankrupt Kuppenheimer chain.[6]

Men's Wearhouse notably ran television and radio commercials featuring Zimmer, and the oft-repeated slogan, "You're going to like the way you look; I guarantee it."[7] According to Business Week, Men's Wearhouse targets the common man, with "the neatly displayed clothes in Zimmer's stores [being] designed to cater to the unpretentious guy who wants to do as little as possible to maintain his wardrobe."[8]

On November 17, 2006, Men's Wearhouse acquired After Hours Formalwear, a clothier specializing in black tie formalwear, from Federated Department Stores, the parent company of department store company Macy's. After Hours Formalwear was originally rebranded MW Tux, but has now been rolled up under the Men's Wearhouse brand. The formalwear group within Men's Wearhouse specializes in tuxedo rentals for men and boys for black tie events.

In 2009, Men's Wearhouse became a major sponsor of the United Football League and continued to sponsor the league in 2010. In that same year, the company acquired the trade and assets of Alexandra plc, which was in administration and Dimensions Corporatewear to develop its presence in Europe.[citation needed]

In 2013, the company acquired the Joseph Abboud brand to its lineup.[9]

"You're gonna like the way you look. I guarantee it."

On June 19, 2013, the company dismissed founder and Executive Chairman George Zimmer for undisclosed reasons.[10] The company later stated that Zimmer was dismissed due to "difficulty accepting the fact that Men's Wearhouse is a public company with an independent board of directors and that he has not been the chief executive officer for two years. He advocated for significant changes that would enable him to regain control."[11]

Acquisition of Jos. A. Bank[edit]

In October 2013, Men's Wearhouse received a $2.4 billion acquisition offer from smaller rival Jos. A. Bank.[12] Men's Wearhouse countered with an offer of its own, which sparked a five-month takeover battle between the two menswear retailers. After Jos. A. Bank rejected the initial counteroffer, Men's Wearhouse announced that it would increase its all-cash bid if Jos. A. Bank revealed limited financial information and entered into negotiations.[13] In an attempt to dilute shares and become too large for Men's Wearhouse to purchase, Jos. A. Bank agreed to acquire the men's outdoor clothing company Eddie Bauer for $825 million.[14] Men's Wearhouse immediately responded by filing a lawsuit to block the proposed acquisition, which was expedited by Delaware Judge J. Travis Laster."[15] The lawsuit required Jos. A. Bank to disclose documents relating to the deal and prevented it from closing the deal without giving Men's Wearhouse 10 days' notice.

On November 12, 2013, Ricky Sandler, CEO of Eminence Capital LLC, published a letter he sent to Men's Wearhouse CEO Douglas Ewert discussing a merger with Joseph A. Bank Clothiers Inc.[16] On November 15, 2013, Joseph A. Bank Clothiers Inc. withdrew "its all-cash proposal to purchase Men's Wearhouse for $48 a share after its self-imposed November 14 deadline".[17]

In March 2014, Men's Wearhouse reached an agreement to acquire Jos. A. Bank for $1.8 billion, on the condition that it dropped its acquisition bid for Eddie Bauer.[18] A Federal Trade Commission investigation into the deal concluded in May 2014, concluding that the merger was "not likely to harm consumers"; the completion of this investigation was required for the merger to go forward.[19]

Tailored Brands filed for bankruptcy due to the coronavirus pandemic and its 1.4 billion dollar long term debt load on August 2, 2020,[20] after announcing a few weeks earlier that they would close around 500 locations.[21]

References[edit]

  1. ^ abcdefg"Inline XBRL Viewer".
  2. ^ ab"Tailored Brands". Fortune. Retrieved June 15, 2020.
  3. ^ abMen's Wearhouse Announces New Holding Company: Tailored Brands, Inc.
  4. ^"company-information". tailoredbrands.com/company-information. Retrieved June 18, 2019.
  5. ^The History of Men's Wearhouse
  6. ^"Men's Wearhouse to liquidate remaining Kuppenheimer stores", Atlanta Business Chronicle, March 4, 1997.
  7. ^"Zimmer no longer there to". tribunedigital-chicagotribune. Retrieved May 12, 2016.
  8. ^Lee, Louise. "Spiffing Up Men's Wearhouse", BusinessWeek, November 1, 2004.
  9. ^Men's Wearhouse to Acquire Iconic American Designer Brand
  10. ^"Men's Wearhouse Fires Founder; He Fires Back". June 19, 2013.
  11. ^Kaplan, David. "Men's Wearhouse explains why it canned Zimmer." Houston Chronicle. June 25, 2013. Retrieved on June 25, 2013.
  12. ^"Men's Wearhouse rejects $2.4 billion bid from Jos. A. Bank". CNN Money. October 9, 2013. Retrieved April 28, 2014.
  13. ^"Men's Wearhouse Adds Fiery Lawsuit, More Money to Takeover Fight". Bloomberg.com. Bloomberg Businessweek. February 24, 2014. Retrieved April 28, 2014.
  14. ^"Jos. A. Bank agrees to buy Eddie Bauer". CNN Money. February 14, 2014. Retrieved April 28, 2014.
  15. ^"Judge Expedites Men's Wearhouse Lawsuit". New York Times Dealbook. Retrieved April 28, 2014.
  16. ^Karr, Arnold J. (November 12, 2013). "Men's Wearhouse Open to Jos. A. Bank Talks, Investor Says". WWD. Retrieved November 12, 2013.
  17. ^Palmieri, Jean E. (November 17, 2013). "Jos. A. Bank Withdraws Bid for Men's Wearhouse – WWD". WWD. Retrieved May 12, 2016.
  18. ^Jayakumar, Amrita (March 11, 2014). "Men's Wearhouse finally buys Jos. A. Bank". The Washington Post.
  19. ^Briggs, James (May 30, 2014). "FTC gives green light to $1.8B Jos. A. Bank, Men's Wearhouse merger". Baltimore Business Journal.
  20. ^"Men's Wearhouse, Jos. A. Banks parent Tailored Brands files for bankruptcy: Report".
  21. ^"Tailored Brands is closing 500 stores".

External links[edit]

Источник: https://en.wikipedia.org/wiki/Tailored_Brands

Men's Wearhouse owner files for bankruptcy protection

Tailored Brands, the company that owns Men’s Wearhouse, has joined a growing list of retailers filing for bankruptcy protection amid the coronavirus pandemic.

Tailored brands said in a statement Sunday that it filed for voluntary Chapter 11 protection. The company said the plan is expected to reduce its debt by at least $630 million.

Tailored Brands President and CEO Dinesh Lathi cited the coronavirus pandemic as a financial hurdle for the company. 

“As evidenced by the positive results we saw in January and February, we have made significant progress in refining our assortments, strengthening our omni-channel offering and evolving our marketing channel and creative mix. However, the unprecedented impact of COVID-19 requires us to further adapt and evolve,” Lathi said in a statement.

“Reaching an agreement with our lenders represents a critical milestone toward our goal of becoming a stronger Company that has the financial and operational flexibility to compete and win in the rapidly evolving retail environment," Lathi added. 

The announcement follows other businesses filing for bankruptcy, including Lord & Taylor, which also announced it filed for Chapter 11 protection on Sunday. Similar announcements were previously made by J.Crew, Brooks Brothers and Ascena Retail Group, the company behind Ann Taylor.

Источник: https://thehill.com/policy/finance/510259-mens-wearhouse-owner-files-for-bankruptcy-protection

Men’s Wearhouse, Jos. A. Bank owner files for bankruptcy in Houston

On HoustonChronicle.com:Tailored Brands, owner of Men’s Warehouse, reported considering bankruptcy

The company was struggling before the pandemic — sales fell in both 2019 and 2018 — as consumers continued their shift toward casual styles from the formalwear and business suits in which Tailored Brands specialize. The coronavirus crisis only accelerated that trend as millions of employees stopped going into the office and worked from home.

The venerable menswear retailer, Brooks Brothers, succumbed to similar trends, filing for bankruptcy last month.

Tailored Brands reported a $270 million loss in the quarter ending May 2, compared to $7 million profit during the same period in 2019, according to filings with the Securities and Exchange Commission.

CEO Dinesh Lathi said in a statement said the company was making progress in its efforts to compete more effectively online as well as in its stores. The company also said in its bankruptcy filing that it was adjusting its merchandise to offer more casual attire that is finding favor among customers.

“However, the unprecedented impact of COVID-19 requires us to further adapt and evolve,” Lathi said in a statement. “Reaching an agreement with our lenders represents a critical milestone toward our goal of becoming a stronger Company that has the financial and operational flexibility to compete and win in the rapidly evolving retail environment.”

Tailored Brands was formed in 2014 when Men’s Wearhouse acquired Jos. A. Bank for about $1.8 billion. The merger, however, never paid off, unable to overcome changing consumer tastes, said Ivan Feinseth, chief investment officer with Tigress Financial Partners, a financial services firm in New York.

“It didn’t create value in the merger, and it was only a matter of time,” he said. “It just slowed the deterioration that they were both experiencing.”

[email protected]

Источник: https://www.houstonchronicle.com/business/article/Men-s-Warehouse-Jos-A-Bank-owner-files-for-15455592.php

Men's Wearhouse owner files for bankruptcy protection

Tailored Brands, the company that owns Men’s Wearhouse, has joined a growing list of retailers filing for bankruptcy protection amid the coronavirus pandemic.

Tailored brands said in a statement Sunday that it filed for voluntary Chapter 11 protection. The company said the plan is expected to reduce its debt by at least $630 million.

Tailored Brands President and CEO Dinesh Lathi cited the coronavirus pandemic as a financial hurdle for the company. 

“As evidenced by the positive results we saw in January and February, we have made significant mens wearhouse bankruptcy in refining our assortments, strengthening our omni-channel offering and evolving our marketing channel and creative mix. However, the unprecedented impact of COVID-19 requires us to further adapt and evolve,” Lathi said in a statement.

“Reaching an agreement with our lenders represents a critical milestone toward our goal of becoming a stronger Company that has the financial and operational flexibility to compete and win in the rapidly evolving retail environment," Lathi added. 

The announcement follows other businesses filing for bankruptcy, including Lord & Taylor, which also announced it filed for Chapter 11 protection on Sunday. Similar announcements were previously made by J.Crew, Brooks Brothers and Ascena Mens wearhouse bankruptcy Group, the company behind Ann Taylor.

Источник: https://thehill.com/policy/finance/510259-mens-wearhouse-owner-files-for-bankruptcy-protection

Men’s Wearhouse Owner Tailored Brands 'Likely' to File Bankruptcy

Tailored Brands  (TLRD) - Get Tailored Brands, Inc. Report, the owner of the Men’s Wearhouse and JoS. A. Bank brands, is likely to pursue chapter 11 bankruptcy protection as soon as its fiscal third quarter amid plunges sales related to the coronavirus pandemic and economic collapse.

In a filing made with the Securities and Exchange Commission on Monday, the Houston-based company said it was “… likely that we will pursue a reorganization under applicable bankruptcy laws, possibly as soon as during the third quarter of fiscal 2020, which begins on Aug. 2, 2020.”

Specifically, the company said in the filing that it doesn’t have enough cash on hand or expected cash to pay its creditors under its asset-backed loan facility beginning in the fourth quarter of fiscal 2020.

In this scenario, shareholders probably will be wiped out, the company said.

Management is exploring alternatives, “including seeking a restructuring, amendment or refinancing of our debt through a private restructuring or reorganization under applicable bankruptcy laws,” the retailer said.

Tailored Brands earlier this month said it would cut about 20% of its corporate positions by the end of the second quarter and close as many as 500 stores due to "the unprecedented and industrywide business disruptions resulting from the coronavirus pandemic," resulting in a $6 million second-quarter charge.

In addition, the company announced that Chief Financial Officer Jack Calandra was leaving the company as of July 31.

To be sure, Tailored Brands had been struggling financially well before recent events. The company in 2014 brought on AlixPartners to advise on its merger between Jos. A. Bank and Men's Wearhouse.

AlixPartners is a New York consultant known for its work in turning around companies. It has advised on some of the largest Chapter 11 reorganizations including General Motors  (GM) - Get General Motors Company (GM) Report, Kmart and Enron Corp.

As of Feb. 1, Tailored Brands had about 13,700 employees and operated mens wearhouse bankruptcy stores under the Men's Wearhouse, Men's Wearhouse and Tux, Jos. A. Bank, and K&G brands.

Tailored Brands joins a growing list of retailers that are seeking bankruptcy protection, not only amid plunging demand related to to the pandemic and rapid economic about-face but also due to drastic changes in what consumers spend money on, specifically work office-geared attire. 

Tailored Brands stock was trading at 43 cents a share on Tuesday. 

Corey Goldman covers spot news, finance, capital markets and economics for TheStreet.

Источник: https://www.thestreet.com

On August 2, 2020, Tailored Brands Inc. — better known as Men’s Wearhouse — and 17 affiliated entities (the “debtors”) filed for chapter 11 bankruptcy in the Southern District of Texas. COVID-19 was the straw that broke the camel’s back: the debtors had been struggling for years, with revenues declining by ~5.6% over the previous two years and unprofitable leases straining resources. Clearly, the #retailapocalypse had not been kind.

The debtors used the bankruptcy to consummate a meaningful balance sheet restructuring. This was the pre-petition cap stack:

On November 13, 2020, the bankruptcy court entered an order confirming the debtors’ fifth amended plan of reorganization. Pursuant to the plan, the holders of term loan paper exchanged their debt for $365mm in take-back term loan paper and 92.5% of the reorganized equity (subject to dilution). This result reflects the debtors’ stated valuation, which pegged the enterprise value at a mid-point of $850mm. So, the senior notes got cleared out as did approximately 40% of the term loan and, in total, the restructuring de-levered the balance sheet by hundreds of millions of dollars. The post-reorg cap stack is:

  • $430mm ABL

  • $75 Exit New Money Term Loan

  • $400mm Take-back Term loan

The remaining 7.5% equity went to a liquidating trust established for the benefit of general unsecured creditors. Post-dilution, the equity position was ~6.7%.

The term lender group who took control of the company is a who’s who of funds* but Silver Point Capital LP holds the largest position: just prior to the plan getting confirmed, Silver Point reported an upsized term loan position of $183.3mm, reflecting bullishness about the opportunity.

Query whether they’re currently second guessing.

On February 26, 2021, the trustee for the aforementioned liquidating general unsecured creditor trust posted a notice “of certain material developments” to the beneficiaries of the trust. It’s a whopper. He might as well just say that the debtors’ projections were complete and utter dogsh*t. He wrote:

In December 2020 and early 2021, the Company experienced unanticipated declines in its business, largely as a result of the ongoing pandemic. The Company has severely underperformed against the financial projections upon which its Chapter 11 plan of reorganization was based. Those projections continue to be at risk in view of current critical assumptions for near term performance which are based on the anticipated resumption of social gatherings such as proms and weddings as well as the return of office workers towards 2019 (pre-pandemic) levels beginning this spring. (emphasis in original)

Rut roh. 😳

Still, the projections weren’t exactly rosy. The company projected that: (i) FY20 revenue would be 50-60% lower than FY19 ($2.88b) and (ii) FY21 revenue would be 25-30% lower than FY19. It mens wearhouse bankruptcy assumed selling margins would increase 1-2% in ‘21 and then remain flat because of pricing pressure and casualization trends. But they do reflect optimism that revenues, gross profit and EBITDA would all ascend starting in 2021.

Clearly that’s not the case. Instead, this “risk factor” has come to life:

Consequently, the company concluded that it needed $75mm in bridge financing to avoid quite possibly the most egregious violation of the PETITION“Two-Year Rule” in recent memory …

Nfl Season 2019 No GIF by NFL

…and an insanely embarrassing Chapter 22 filing.

The company, therefore, pounded the pavement to solicit interest from dozens of parties but, ultimately, the company and its bankers landed back at Silver Point’s doorstep. Silver Point agreed to “…provide $25 million pari passu to the existing priority term loan and $50 million secured on a subordinated basis. The $50 million loan is converted to new common stock at a price of $1.00 per share within three years.

This is an obviously negative for the equity in the trust. Indeed, “if the $50 million loan were to convert upon transaction close, the Trust’s estimated fully diluted ownership of the Company’s common stock will be reduced from the current 6.7% to approximately 0.8%.” 😬Not accounting for the Silver Point transaction, the trust’s 562,500 shares have an estimated value of ~$703k at $1.25/share.

The trustee, therefore, reviewed the company’s assessment and performed its own independent analysis. The findings weren’t good. Per the trustee:

Based on the information received from the Company’s advisors, the Trustee believes the Company is in need of additional financing in order to survive the pandemic. The Trustee believes that certain losses experienced in recent months may be permanent, and do not just reflect a temporary shift in demand. The Trustee believes … that without the proposed financing the Company could be in default of certain loan covenants under its senior asset based lending facility, leading to cross defaults under its other debt instruments. This would likely result in another restructuring process, putting the Company at a risk of potential liquidation, in which case the Trust’s common stock could become worthless. (emphasis added).

After seeing the financials, the trustee be like…

will smith run GIF

He then entered into an agreement to sell the 562,500 shares for $3.3mm (or $5.86/share) and get the hell out of dodge. The alternative, he says, was to hold on to the stock, challenge the proposed Silver Point, and start suing the f*ck out of people with the hope of achieving a better outcome than the $3.3mm — something he dubbed “speculative and uncertain.

As we write this, additional states are announcing moves to re-open. That cannot happen soon enough for the likes of Men’s Wearhouse.

*Other funds involved include, among numerous others, CIFC, Intermediate Capital Group, PGIM, Voya Alternative Asset Management, ALCOF II NUBT LP, Carlson Capital LP, First Eagle Alternative Credit LLC, The Guardian Life Insurance Company of America, Marble Point Credit Management LLC, MJX Asset Management LLC, ZAIS Group LLC, and Benefit Street Partners.

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⚡️New Chapter 30 Filing - Just Energy Group Inc. ($JE)⚡️

Hold on. Before one of our student readers goes running for his/her copy of the bankruptcy code, let us spare you: there is no such thing as a Chapter 30 filing. We’re being flip AF here. Just Energy Group Inc. ($JE), retail energy providers of electricity and natural gas, filed a Chapter 15 bankruptcy case in the Southern District of Texas yesterday (March 9) in support of a concomitant CCAA filing in Ontario Canada. This is the second Chapter 15 filing from JE in less than a year.

The first 15 consummated in October 2020: the process afforded the company with the opportunity to shed some debt and push out some loan maturities. It “…entered 2021 on strong financial and operational footing.” The recent Texas storm put an end to that. We discussed the horror show that this created in Sunday’s a$$-kicking Members’-only briefing, “💥Is Texas F*cked?💥.”

In brief, the historic storm created a surge of demand for electricity as Texas’ residents struggled to stay warm. As demand surged, the Public Utility Commission of Texas (“PUCT”) instructed the Electric Reliability Council of Texas, Inc. (“ERCOT”) to jack up prices to meet demand. ERCOT obliged setting rates at the maximum rate of $9,000/MWh and maintained it there for four straight days as the weather persisted. Compounding matters, “…the price for ancillary services, which is impacted by the $9,000/MWh price for electricity, reached previously unseen levels, at times exceeding $25,000 per MWh.” Now the piper is looking to get paid. JE was f*cked.

In the last week, ERCOT sent JE multiple invoices totaling over $280mm, demanding payment within days. As you can imagine, this created a wee bit of a liquidity issue — an issue compounded by demands from business counterparties getting nervous and making collateral and payment demands. 😬

Among many other initiatives, JE went into problem-solving mode. It reached out to PUCT, entreating PUCT to order ERCOT to deviate from SOP regarding settlements, collateral obligations and invoice payments (see tweet above). PUCT refused.

So then JE went into triage mode. It paid tens of millions to ERCOT in the ordinary course while also (i) speaking with potential DIP lenders, (ii) engaging its credit facility lenders to ensure that it would have access to its cash management systems and be able to use available liquidity to operate in the ordinary course of business, and (iii) dialoging with major counterparties like Shell and BP to confirm that they’d support the business during the horrific time. Ultimately, JE was able to secure a commitment for $125mm in DIP financing so that it could remit payment to ERCOT and protect the value of the company.

The purpose of the Chapter 15 filing is to obtain recognition of the foreign main proceeding in Canada, impose the automatic stay, and move forward to tap the DIP financing.

♵New Chapter 11 Bankruptcy Filing - CarbonLite Holdings LLC♵

Los Angeles-based CarbonLite Holdings LLC and ten affiliates (collectively, the “debtors”) filed for chapter 11 bankruptcy in the District of Delaware. The company articulates a clear bull case but, for now, capital intensive investments and COVID-19 derailed the debtors’ trajectory.

The debtors operate two business segments. First, they process post-consumer recycled polyethylene terephthalate plastic products (“rPET”), leveraging $200mm worth of investment to build their three recycling facilities in California, Dallas and, most recently, Reading Pennsylvania (the “Recycling Business”). The Recycling Business sources rPET from 1,000 pound bales of used plastic bottles or flakes, which comes from plastic in bales that has already been processed and refined. Currently, the company processes 200mm pounds of rPET pellets per year which translates into 3.8b used bottles a year. Once, the Reading facility comes online — which is projected to occur next month — upper case cursive m debtors will be able to process an additional 85mm pounds of rPET pellets. End users include Coca-Cola Co. ($KO), PepsiCo Inc. ($PEP), Nestlé Water ($NSRGY) and Niagara Water. The latter two make appearances as the top two creditors on the debtors’ “Top 40” general unsecured creditors list.

In 2016, the debtors expanded via acquisition. Pinnpack Packaging LLC gave the debtors the ability to product PET and rPET packaging products like tubs, bowls, domes and clamshells for food packaging. The Recycling Business sells rPET pellets directly to PinnPack for production.

The debtors state the bull case as follows:

The Company is poised to play a leading role in the growing environmental sustainability movement. By diverting recyclable PET plastic from the general waste stream and converting it to high-quality reusable products—which are, in turn, used in numerous manufacturing cycles—the Company is at the forefront of this movement. In 2020, California Governor Gavin Newsom signed AB 793 into law, the nation’s first mandatory recycled content bill. Under the new law, plastic beverage containers covered by California’s container redemption program will have to contain at least 15% recycled plastic by 2022, 25% by 2025, and 50% by 2030. Further, many of the world’s largest beverage companies— including several of the Company’s customers—have announced their commitment to increase use of rPET in their packaging over the next decade. As a result, industry estimates project that the total rPET market for bottle production will skyrocket from 550 million pounds in 2019 to more than 1.9 billion pounds by 2025. As the only independent PET recycler of scale, the Company is therefore well-positioned for incredible growth.

The financials don’t mirror the optimism:

On a consolidated basis, for the year ended 2019, the Company generated negative EBITDA of $52.3 million and net losses of $70.4 million. For the eleven months ended November 30, 2020, on a consolidated basis, the Company generated negative EBITDA of $15.0 million (unaudited) and net losses of $45.8 million (unaudited).

Clearly there are things to fix here.

First, operationally, this thing has issues. There’s, like, a maestrom of sh*t as the California and Texas facilities have operated at suboptimal levels, diminishing revenue potential and crushing margins. Some shite customer contracts don’t help either. Texas also apparently sucks at optimizing recycling.* ⚡️SHOCKER⚡️

Second, COVID-19 obviously didn’t help. The new Reading facility hasn’t been able to ramp up to full capacity. First tennessee bank hours chattanooga tn needed to get it there were unable to come to the US due to international travel restrictions.

These factors sparked some serious liquidity issues, triggering defaults under the debtors pre-petition term credit agreement and the indentures governing the issuance of municipal bonds in PA and TX. The debtors’ capital structure consists of:**

  • a $7.79mm ABL;

  • $99.36mm of term loans;

  • ~$20mm in subordinated notes;

  • municipal bonds (TX) of $45.765mm; and

  • municipal bonds (PA) of $71mm.

The debtors intend to use the bankruptcy process to (i) get themselves access to some much-needed dinero and (ii) sell the assets. The debtors have a commitment for $15mm of new money secured by the TX assets and a $75mm DIP component ($25mm new money, the rest a roll-up) secured by the PA assets. Both loans are at 12% and feature 3% commitment fees.

Meanwhile, the debtors have no stalking horse purchaser at the time of filing. According to their first day papers, however, there are at least nine potential parties dialoguing with the debtors’ investment bankers about servicing as the stalking horse bidder. Clearly there are folks out there buying into the bull case.

Given the enthusiasm, we highly suggest the bankers find a way to prevent the potential buyers from listening to this interview with company CEO Leon Farahnik:

While his enthusiasm for what he’s built and the potential environmental benefit is commendable, he may want to lay off on, to paraphrase, the “this is the hardest business I’ve ever attempted talk” after describing a forty year track record of business-building and entrepreneurship.

Just saying. 😳

*Per the debtors:
Additionally, since the state of Texas does not have point of sale deposits paid mens wearhouse bankruptcy plastic bottles when purchased, the Bales used by the Dallas Facility consist of “curbside” bales which contain less usable materials, have more contaminants, require additional processing times, and have much lower yields than recycled bales from material recycling facilities, such as those used by the Riverside Facility.
**There are other first presbyterian church virginia beach obligations. We’d be remiss, however, if we didn’t highlight that this is yet another case of debtors availing themselves of PPP money ($7.285mm) and filing for bankruptcy anyway.

😎 Notice of Appearance: Max Frumes, Co-Author of the New Book, "The Caesars Palace Coup: How a Billionaire Brawl Over the Famous Casino Exposed the Power and Greed of Wall Street"😎

This week we welcome Max Frumes, co-author (along with The Financial TimesSujeet Indap) of the new book, “The Caesars Palace Coup: How a Billionaire Brawl Over the Famous Casino Exposed the Power and Greed of Wall Street.”

PETITION: Hi Max. Thanks for joining us. Let’s cut right to it: you’re in a room in front of 50,000 people who have an interest in private equity and/or restructuring. Why should they care about this story? Give us the elevator pitch.

Max: “If you’re in that crowd, Caesars is THE seminal moment in PE and restructuring. Everything that came before – Michael Milken, the GFC, the mega-LBO, the distressed debt boom – culminated in the fight over Caesars. Everything that’s come after – getting “J. Screwed”, creditor-on-creditor violence, corporate governance games, extreme liability management in the time of coronavirus – can be traced back to Caesars.”

PETITION: For our readers who were either too busy to follow the Caesars situation in real-time or weren’t yet focused on mens wearhouse bankruptcy investing, give us the rapid fire version of who the top winners and losers were and, in one sentence, why. Feel free to bullet point it.

Max: “In this case, Appaloosa, Elliott and Oaktree can claim decisive victory over Apollo. While basically every distressed investor did well because the company turned around, those three funds drove the battles that resulted in a court-appointed examiner finding as much as $5 billion worth of credible claims of fraudulent transfers and corporate governance misdeeds that tipped the case. Just those three funds profited in the billions, whereas Apollo and TPG lost their entire initial equity checks. David Tepper not long after the case ended paid a record price for the Carolina Panthers, coincidentally or not.

Ironically, long-term, Apollo might have the last laugh. What others saw as financial shenanigans that crossed the line over and over, LPs saw as a PE firm able and willing to go to all lengths to save an investment. Apollo raised a record $25 billion PE fund shortly after the case. Apollo’s point-men on Caesars are ascendent with David Sambur now the co-head of private equity and Marc Rowan soon to be CEO. What’s more, Apollo is back on the Vegas strip, just last week announcing a deal to buy the Venetian – with the help of the REIT created out of the Caesars bankruptcy.”

PETITION: This bit made us laugh out loud:

“But now, on September 23, 2016, [Jim] Millstein was five years removed from this stint as a Washington insider [serving as Chief Restructuring Officer of the United States]. He had set up his own firm, Millstein & Co., to capitalize on his sterling reputation and experience. However, he had not fully appreciated just how nasty the restructuring world had become in his absence. After having the power of the US Treasury Department behind him for the better part of two years, he now found himself being mistreated by ex-Ivy League jocks almost half his age.”

Care to expound upon this state of affairs?

Max: “There is a ton of money in the distressed asset class relative to the number of good opportunities so it should not be surprising that tempers are short. And while stars rise fast on Wall Street, sometimes judgement and maturity do not advance as quickly as raw horsepower, which Jim Millstein, the Caesars ringmaster, found out the hard way.”

PETITION. Purportedly “independent” directors were very much a part of this story. In what respect to you believe this case affected the use of independent directors in subsequent restructuring situations? Are you surprised to see some of the same players cycling around?

Max: “Totally shocked (I’m not shocked). Caesars provided the perfect test case for what happens when you use an independent director versus when you don’t, regardless of how “ugly” a deal mens wearhouse bankruptcy Out of all the aggressive pre-petition transactions perpetrated by Apollo, the one the bankruptcy examiner liked the least, he assigned no liability to whatsoever almost entirely due to the fact that newly appointed independent directors signed off. From then on, law firms have figured out how and when to parachute in "independent" directors to cleanse messy transactions. Everybody by this point is in on the joke.”

PETITION. Put yourself in the shoes of an MBA student. If you’re considering interviewing with a large private equity shop, what’s your main takeaway from the book? Then do the same exercise for a third year law student looking to get into big law.

Max: “The key takeaway for both the business and the law students should be just how interconnected the two are once you get to the big leagues. The distressed investment theses in Caesars required weighting probable versus possible legal outcomes in addition to understanding the underlying business, not to mention the skill needed to whip up a precise cap table. And the best lawyers in the case understood the dollars that hinged around each minute legal fight. Deep down, however, I hope students take away that they should just spend a few years in big law or finance before finding their true calling as a journalist.”

PETITION: Creditor-on-creditor violence has obviously been a hot topic lately — tiaa layoffs you quickly mention at the end of the book (referring to J.Crew and Serta Simmons, specifically). Whether it’s TriMark USA, Revlon Inc. ($REV), Tupperware Corporation ($TUP), Transocean Ltd. ($RIG), or Boardriders, market participants are getting buried alive. We point out that the volume of shady-cum-combative deals always seems to increase when there isn’t a ton of distressed activity out there and funds are scratching and clawing for returns. Are there any recent situations that have piqued your interest lately and why? In what way, if at all, do they give you PTSD after spending four years writing this book? Is there one, specifically, you’d love to write about?

Max: “Love the question, and my team at LevFin Insights has been in the weeds on each of those deals. What is interesting about this world is how the same sets of funds and the lawyers and bankers all end up on different sides making arguments that they complained about in the case before. Apollo was the sponsor in Caesars but is a creditor in Serta Simmons and AMC. Oaktree, in orchestrating the priming deals in TriMark and Boardriders, was even called out for acting like Apollo. AMC may be the most fun one of late because of the crazy Reddit fireworks that helped keep the company out of bankruptcy.”

PETITION: We’d be remiss if we didn’t acknowledge the small “Notes and Sources” section at the very end of the book. You and Sujeet mens wearhouse bankruptcy call out Paul Weiss for their antics as you both worked on this project. You write:

Paul, Weiss, after repeatedly ignoring our inquiries in 2019, eventually agreed to only respond to written questions. The set of limited responses it sent back to us in December 2019 was almost immediately followed by a remarkable letter that demanded that we turn over our manuscript as well as a list of Paul, Weiss sources that they believed we had approached outside of official channels. The letter went on to accuse us of acting in bad faith and culminated with a threat to sue us for defamation (all well before a first draft of this book existed).

You continued:

We share these events to underscore the strong feelings that underlie the Caesars story and to demonstrate how the news media continues to face undue harassment from powerful forces, like Paul, Weiss, for simply attempting to do its job.

Do you have anything else to add to this now that the book is out?

Max: “Intimidation and bullying do work sometimes when powerful forces are trying to silence underfunded news outlets carlos bremer empresario journalists. So first, support good journalism (especially investigative work done by places like ProPublica and Reveal). But more importantly, I believe those powerful forces are better served by not fighting it; don’t obfuscate, own mistakes, right wrongs, and vie to be better if, in the light of day, those things turn out to be ugly.”

PETITION: When you guys set off to write this book was there a model for you? What prior book, if any, served as your inspiration here?

Max: “I mean both of us marvel at James Stewart, especially the Den of Thieves. And like a couple of guys shooting fadeaways in the driveway thinking “Kobe!”, greats we tried to emulate included Connie Bruck’s Predator’s Ball, Bethany McLean and Peter Elkind’s Smartest Guys in the Room, and Bryan Burrough and John Helyar’s Barbarians at the Gate (which our book is frequently next to on Amazon, which is kind of exciting!).”

PETITION: Thanks Max. Good luck to you and Sujeet with the book.

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📚Resources📚

We have updated our robust compilation of a$$-kicking resources covering restructuring, tech, finance, investing, economics and disruption. You can find the full compilation here.

📤Notice📤

Nick Welch (Managing Director) joined BDO Consulting Group from B. Riley Financial.

🙌Congratulations to:🙌

H.I.G. Bayside Capital for closing the new H.I.G. Bayside Loan Opportunity Fund VI with aggregate capital commitments of $1.4b.

💰New Opportunities💰

Plante Moran is seeking a senior restructuring leader to join our growing practice and help us continue providing our clients with the best in class service. This role will focus primarily on practice development activities and operational and financial restructuring engagements to identify business problems and design workable solutions. We tackle our client’s difficult issues and solve their complex problems. For more information, please visit here or contact us at [email protected]

Looking for quality people? PETITION lands in the inbox of 1000s of bankers, advisors, lawyers, investors and others every week. Email us at [email protected] to learn about posting your opportunities with us.

Nothing in this email is intended to serve as financial or legal advice. Do your own research, you lazy rascals.

Источник: https://petition.substack.com/p/menswearhouse

Men’s Wearhouse, Jos. A. Bank owner files for bankruptcy in Houston

On HoustonChronicle.com:Tailored Brands, owner of Men’s Warehouse, reported considering bankruptcy

The company was struggling before the pandemic — sales fell in both 2019 and 2018 — as consumers continued their shift toward casual styles from the formalwear and business suits in which Tailored Brands specialize. The coronavirus crisis only accelerated that trend as millions of employees stopped going into the office and worked from home.

The venerable menswear retailer, Brooks Brothers, succumbed to similar trends, filing for bankruptcy last month.

Tailored Brands reported a $270 million loss in the quarter ending May 2, compared to $7 million profit during the same period in 2019, according to filings with the Securities and Exchange Commission.

CEO Dinesh Lathi said in a statement said the company was making progress in its efforts to compete more effectively online as well as in its stores. The company also said in its bankruptcy filing that it was adjusting its merchandise to offer more casual attire that is finding favor among customers.

“However, the unprecedented impact of COVID-19 requires us to further adapt and evolve,” Lathi said in a statement. “Reaching an agreement with our lenders represents a critical milestone toward our goal of becoming a stronger Company that has the financial and operational flexibility to compete and win in the rapidly evolving retail environment.”

Tailored Brands was formed in 2014 when Men’s Wearhouse acquired Jos. A. Bank for about $1.8 billion. The merger, however, never paid off, unable to overcome changing consumer tastes, said Ivan Feinseth, chief investment officer with Tigress Financial Partners, a financial services firm in New York.

“It mens wearhouse bankruptcy create value in the merger, and it was only a matter of time,” he said. “It just slowed the deterioration that they were both experiencing.”

[email protected]

Источник: https://www.houstonchronicle.com/business/article/Men-s-Warehouse-Jos-A-Bank-owner-files-for-15455592.php

Men's Wearhouse, Jos. A. Bank owner Tailored Brands files Chapter 11 bankruptcy amid store closings: See the list


The parent company of suit sellers Men's Wearhouse and Jos. A. Bank filed for Chapter 11 bankruptcy protection Sunday after announcing plans to permanently close up to 500 stores.

Business wear companies have been devastated by the trend toward more casual wear during the COVID-19 pandemic, which has relegated millions of Americans to work from home.

Tailored Brands, owner of the two chains, had about 19,300 employees as of Feb. 1, according to a public filing. The company has 1,274 stores in the USA and 125 stores in Canada, according to a court filing.

The company announced in July that it would close up to 500 stores "over time" and cut about 20% icici bank internet banking customer care email id its corporate jobs. A list of total store closures was not immediately available.

Tailored Brands said it secured support with more than 75% of its senior lenders for a $630 million debt restructuring plan that would allow it to survive bankruptcy.

In addition to Men’s Wearhouse and Jos A. Bank, Tailored Brands owns Moores Clothing for Men and K&G Fashion Superstore.

Up to 500 store closings planned: Men's Wearhouse, Jos. A. Bank owner Tailored Brands plans closures

Two-tone car paint makes a comeback: Nissan, Hyundai among automakers reviving ’50s-era styling for SUVs

The company said it "will continue to provide customers with the selection, convenience, service and value that help people look and feel their best in the moments that matter, while continuing to prioritize the safety and well-being of employees and customers."

The company's filing is the latest in a surge of Chapter 11 bankruptcies by apparel retailers during COVID-19, including Brooks Brothers, J.C. Penney, Neiman Marcus and J. Crew.

Other retailers that haven't filed for bankruptcy plan to shutter locations, including Victoria's Secret, Nordstrom and Signet Jewelers, parent company of Kay, Zales and Jared.

More than six years ago, Men's Wearhouse acquired Jos. A. Bank Clothiers. In 2016, the company announced the creation of Tailored Brands as a publicly traded holding company for the chains.

Here is the list of the first 100 stores expected to close, including Jos. A. Bank, Men's Wearhouse and Moores locations, according to a court filing:

Jos. A. Bank store closings list

California

Colorado

Connecticut

District of Columbia

Florida

Georgia

Illinois

Louisiana

Lafayette: 1900 Kaliste Saloom Rd. Suite 200

Maryland

Massachusetts

Minnesota

Roseville: 805 Rosedale Ctr. Suite 905

Nebraska

Lincoln: 6005 O St. Suite H

New Jersey

Summit: 447 Target is it open today Ave. 

New York

Oregon

Portland: 9611 SW Washington Square Rd.

Pennsylvania

Philadelphia: 8400 Germantown Ave. Suite 3

Tennessee

Texas

Virginia

Dulles: 21100 Dulles Town Cir. Suite 125

Men's Wearhouse store closings list

California

Connecticut

Westport: 950 Post Rd. E

Florida

Kansas

Lenexa: 9320 Marshall Dr.

Illinois

Kentucky

Paducah: 5101 Hinkleville Rd. Suite 530

Maryland

Towson: 825 Dulaney Valley Rd. Suite 4340

Massachusetts

New York

North Carolina

Oregon

Beaverton: 11915 SW Canyon Rd. Suite A

Pennsylvania

Rhode Island

Warwick: 685 Bald Hill Rd.

Tennessee

Collierville: 10210 Collierville Rd. Suite 101

Texas

Virginia

Richmond: 9101 W. Broad St.

Moores store closings list

Quebec

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

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Источник: https://www.usatoday.com/story/money/2020/08/03/mens-wearhouse-jos-a-bank-store-closings-tailored-brands-bankruptcy/5571035002/

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