Men’s Wearhouse, Jos. A. Bank Parent To Lay Off 20% Of Its Workforce, Close Up To 500 Stores

The parent company behind brands such as Men's Wearhouse and Jos. A. Bank has announced that it will cut its workforce by 20% and potentially close up to 500 stores as it feels the coronavirus bear down on its retail business.

Tailored Brands (TLRD) made the announcement on Tuesday, saying that business disruptions from the coronavirus prompted the layoffs and store closures. The 20% reduction of its workforce will impact its corporate employees by the end of fiscal Q2 2020.

The company also said that it has identified 500 brick-and-mortar stores that it is looking to close as it works to reduce and realign its store portfolio, supply chain, and organization to better serve its business. The men’s apparel retailer did not disclose which stores are slated to close.

The changes at Tailored Brands are meant to strengthen the company’s financial position as it looks to become more competitive in the “challenging retail environment” through its store footprints and e-commerce business.

Tailored Brands closed all of its 1,450 stores in March amid the coronavirus pandemic, reopening about 96% of its locations as state and local guidelines allowed.

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

“It is always difficult to eliminate jobs and say farewell to our friends and colleagues. I want to thank our teammates affected by these changes as well as those who continue to help us meet the challenges currently facing our industry and who remain dedicated to serving our customers.”

The company expects to take a pre-tax charge of about $6 million in the second quarter of fiscal 2020 for severance payments and termination costs.

Tailored Brands also made some leadership changes, announcing that its executive vice president, chief financial officer, and treasurer Jack Calandra will leave the company as of July 31. Calandra’s duties will be split between Lathi and Holly Etlin, who is the managing director at AlixPartners and has been appointed Tailored Brands' chief restructuring officer.

Shares of Tailored Brands were trading at $0.77 as of 2:11 p.m. ET, up $0.07 or 10%.