Tailored Brands, Inc., owner of Men’s Wearhouse and Jos. A Bank, announced that, as a result of the unprecedented and industrywide business disruptions resulting from the coronavirus pandemic, it will eliminate 20% of corporate positions and close up to 500 stores. Jack Calandra, executive vice president, chief financial officer and treasurer, will also leave Tailored Brands on July 31.
These changes are designed to strengthen the company’s financial position and enable it to compete more effectively in the challenging retail environment, Tailored Brands said.
“We have safely reopened almost all of our retail stores and look forward to helping our customers look and feel their best for their moments that matter,” Tailored Brands President and CEO Dinesh Lathi said. “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. 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.”
In connection with these corporate personnel changes, the company expects to record a pre-tax charge of approximately $6 million in the second quarter of fiscal 2020 for severance payments and other termination costs, all of which are cash costs.
In the near term, Calandra’s responsibilities will be divided between Lathi and Holly Etlin, a managing director at AlixPartners who has been appointed to the newly created role of chief restructuring officer, reporting directly to Lathi. Etlin brings more than 30 years of restructuring experience and a deep expertise in retail, and has been working closely with the executive team and board of directors as an advisor since late March.
“Jack and I have been discussing a transition and, with a full appreciation of both the challenges to be solved and the opportunities to be realized in the next phase of the company’s journey, we both agree this is the right time for a change,” Lathi said. “I want to thank Jack for his numerous, varied and significant contributions over the past three years. He leaves behind a strong finance team that, with Holly’s support and leadership, will help us continue to build a strong future for our company.”
