Retail holding company for men apparel Tailor Brands Inc. (TLRD) has filed for chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas.
The retailer cites breakout and continued rapid spread of deadly COVID-19 which has crippled many sectors of the economy resulting to significant declined sales by the company.
Among industries worst affected by the pandemic, apparel retailers is among the top since its brick and motor stores were all closed down in efforts to cut spread of the deadly virus since they are regarded as non-essential services.
This closing down resulted to many employees working on the stores to lose their jobs and their means of livelihood.
The apparel retailer said it had entered into agreements with its lenders to restructure earlier agreed terms of payment. The renegotiated agreements involved 75% of its senior lenders and it will see the company trim its debt by around $630 million.
In the court filling, Tailor Brands has listed its assets being worth $1 billion while its liabilities stand at $10 billion.
Additionally, the company said it has already received commitments for $500 million in debtor-in-possession financing from its lenders.