FARGO — North Dakota's three Men's Wearhouse locations appear to have escaped the first round of closures announced by its parent company this week.
Tailored Brands, Inc., which owns Men's Wearhouse, Jos. A Bank, Moores and K&G Fashion Superstore, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas, Sunday, Aug. 2.
Having "re-evaluated the forecasted profitability and strategic value of every store in its fleet", the company identified up to 500 stores to potentially close, a news release stated .
According to a report from USA Today , neither the Fargo, Bismarck nor Grand Forks stores were listed among the "first 100 stores expected to close," court documents stated.
The company still plans to continue paying employees, including pre-existing health care and welfare benefits, pending the court's decision. Chapter 11 bankruptcies allows businesses to reorganize while staying open and paying debts.
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Tailored Brands also plans to restructure its corporate organization, resulting in the elimination of approximately one-fifth of its corporate positions by the end of the fiscal second quarter, the release continued.
Under the strain of the COVID-19 pandemic, the firm joins the list of roughly 40 retail companies which have filed for bankruptcy this year, greater than last year's figure, The Dallas Morning News reported .
Through an agreement with its lenders, Tailored Brands expects to shed at least $630 million in debt and gain access to a $500 million in revolving credit to continue operating and emerge from bankruptcy, a statement on TailoredStronger.com said .
