Tailored Brands has taken decisive action to strengthen our financial position. We have executed an agreement with our senior lenders that we expect will allow us to reduce our debt by at least $630 million, gain access to a $500 million debtor-in-possession (DIP) revolving credit facility from our existing lenders and position our brands for success. To implement this agreement as efficiently as possible, Tailored Brands and certain of our subsidiaries have chosen to use the protections and proven process outlined in Chapter 11 of the U.S. Bankruptcy Code.

All of our brands—including Men’s Wearhouse, Jos. A. Bank, K&G and Moores—remain open for business and are continuing to serve customers as we take these next steps. Our vendors are an important part of our future, and we value our continued relationships with you.

Please note that U.S. Bankruptcy Law gives administrative priority to claims incurred after a company has filed for Chapter 11 protection and expressly permits payment for goods and services provided to a company in Chapter 11 to allow the company to continue normal business operations.  We intend to pay these “post-petition claims” in the normal course and have secured a commitment for up to $500 million in DIP financing to help ensure we are able to fund our go-forward financial obligations throughout the restructuring. Upon our emergence from Chapter 11, the Plan agreed with our senior lenders would allow this DIP facility to convert to a $400 million revolving credit facility.

Unpaid charges for goods and services delivered on or prior to August 2, 2020 (“pre-petition claims”) will be addressed through the Chapter 11 process. Any recoveries available will be outlined in our Plan of Reorganization. Claims information can be found online at http://cases.primeclerk.com/TailoredBrands and will be mailed to all vendors, along with other case updates, by Prime Clerk, a third party that is helping us with the administrative aspects of our case. For your reference, our case number is 20-33900.

Thank you for your patience and continued support. You have my assurance that we are moving quickly throughout the process and we look forward to being a stronger partner as a result of the actions we’re taking now.

Best regards,

Dinesh Lathi
President & CEO

FAQ

1. How will the Chapter 11 filing affect Tailored Brands’ relationship with vendors?

Tailored Brands is committed to maintaining positive relationships with our vendors throughout this process, and we are grateful for your patience and partnership. Please note that U.S. Bankruptcy Law gives administrative priority to claims incurred after a company has filed for Chapter 11 protection and expressly permits payment for goods and services provided to a company in Chapter 11 to allow the company to continue normal business operations. We intend to pay these “post-petition claims” and have secured a commitment for up to $500 million in DIP financing to help ensure we are able to fund our go-forward financial obligations throughout the restructuring. Upon our emergence from Chapter 11, the Plan agreed with our senior lenders would allow this DIP facility to convert to a $400 million revolving credit facility.

2. What do I need to do to be paid for goods and services I delivered to Tailored Brands prior to the Chapter 11 filing?

Unpaid charges for goods and services delivered on or prior to August 2, 2020 are considered “pre-petition” claims and will be addressed through the Chapter 11 process. Any recoveries available will be outlined in our Plan of Reorganization.

Proof-of-claim forms are available online at http://cases.primeclerk.com/TailoredBrands and will be mailed to all vendors, along with other case updates, by Prime Clerk, a third party that is helping us with the administrative aspects of our case. Not all vendors will have a claim—and receiving this form does not necessarily mean that you do.

3. How can I be sure I will be paid for goods and services delivered after the filing?

U.S. Bankruptcy Law gives administrative priority to claims incurred after a company has filed for Chapter 11 protection and expressly permits payment for goods and services provided to a company in Chapter 11 to allow the company to continue normal business operations. Tailored Brands expects to pay these “post-petition” amounts in the normal course.

In advance of the Chapter 11 filing, our Company received commitments for $500 million in DIP financing from our existing revolving credit facility lenders. Following Court approval, this financing, combined with cash on hand and cash flow generated by our ongoing operations, will help ensure we are able to meet these commitments. Additionally, our agreement with lenders allows the DIP financing will convert to a $400 million revolving credit facility from existing lenders upon our emergence from Chapter 11.

4. How do I know if my claim is considered pre-petition or post-petition?

Goods and services delivered on or prior to August 2, 2020, the date of Tailored Brands’ Chapter 11 filing, are considered pre-petition. Goods and services delivered after the filing are considered post-petition. In making this distinction, the key factor is not the invoice date but the date when the goods or services were delivered to Tailored Brands.

5. Why should I continue doing business with Tailored Brands?

The steps we are taking now position Tailored Brands for long-term success – and that’s good for our partners, too. Already, we have received commitments for $500 million in DIP financing from our existing revolving credit facility lenders. Following Court approval, this financing, combined with cash on hand and cash flow generated by our ongoing operations, will help ensure we are able to meet these commitments. Additionally, our agreement with lenders allows the DIP financing will convert to a $400 million revolving credit facility from existing lenders upon our emergence from Chapter 11.

6. How will vendors be kept informed during this process? Where can I go if I have additional questions?

Vendors will receive mailed legal notices from Prime Clerk, a third-party partner supporting the more administrative elements of our Chapter 11 process, and you are encouraged to call our dedicated hotline at Prime Clerk at (877) 461-5690 (Toll-Free) or (347) 817-4089 (Local/International) to get answers to any questions you may have. Moving forward, updates will be provided on this website and you can access legal filings at http://cases.primeclerk.com/TailoredBrands.

7. What is Tailored Brands’ case number?

Tailored Brands’ case number is 20-33900.

8. Was your DIP financing approved?

On September 2, we received final approval from the Bankruptcy Court to access $500 million of DIP financing committed by our senior lenders as well as the cash collateral of both our existing revolving credit facility lenders and term loan lenders. Combined with cash on hand and cash from ongoing operations, this financing will help us to honor our financial commitments during the Chapter 11 process.