Tailored Brands Seeks Deal to Avoid Second Bankruptcy

Owner of Men’s Wearhouse, Tailored Brands Inc. (Houston), is looking to stay afloat less than three months after it emerged from bankruptcy protection. The company has underperformed compared to projections in the Chapter 11 reorganization plan and needs $75 million to avoid a default, reports Business of Fashion.

The company has arranged a tentative deal with Silver Point Capital (Greenwich, Conn.), its largest equity holder and a lender, to provide the funds and help it avoid another bankruptcy. The plans call for $25 million of funds that rank equal to an existing term loan and $50 million of subordinated debt. The $50 million loan would be converted to equity within three years at $1 per share.

A representative for Tailored Brands said in a statement to Bloomberg that the company has been in talks to raise additional money to help it execute its strategic plan and expects to close the deal next week.

According to the statement: “[The retailer] has exceeded the forecasts shared with prospective investors in every week of the past two-and-a-half months.”