Tailored Brands, Inc. (NYSE: TLRD) today announced that, after instituting enhanced social distancing and sanitation protocols that meet or exceed those recommended by the Centers for Disease Control and Prevention, it reopened its e-commerce fulfillment centers effective Monday, March 30th and these centers have begun shipping online orders.
Tailored Brands Inc. announced its adoption of a short-term shareholder rights plan on Tuesday, due to the coronavirus and the volume and volatility of the stock. The plan is intended to prevent a person or group from accumulating enough shares without paying other stockholders or giving the board enough time to react. The rights can be exercised if someone or a group gathers 10% or more of outstanding common shares. At that point, all rights holders can acquire shares at a 50% discount or Tailored Brands can exchange rights on a two-for-one basis. Anyone who already owns the triggering amount of 10% may hold on to them. The plan expires on March 29, 2021. Tailored Brands portfolio includes Men's Wearhouse and Jos. A. Bank. Tailored Brands stock is down 62.6% for the year to date while the S&P 500 index is down 18.7% for the period.
The default rate among retailers could rise to 19% by the end of the year, according to Fitch Ratings, and that probably will lead to more filings.
Tailored Brands Inc. , the parent of Men's Wearhouse and Jos. A. Bank clothing stores, said Thursday that it will close its e-commerce fulfillment centers from March 20 through at least March 28, out of concern over the COVID-19 pandemic. The company said it will also suspend the currently limited operations in its retail stores during that period, while employees will be paid for scheduled hours during the closures. The company said orders can be placed online but items will be shipped after the distribution center reopens. The stock, which was still inactive in premarket trading, has plummeted 69.6% over the past three months, while the S&P 500 has lost 25.2%.
Moody's Investors Service, ("Moody's") today downgraded The Men's Wearhouse, Inc. ("Men's Wearhouse") ratings, including its Corporate Family Rating to B3 from Ba3, Probability of Default Rating to B3-PD from Ba3-PD, secured term loan rating to B3 from Ba3 and unsecured note rating to Caa2 from B2. Men's Wearhouse is a subsidiary of Tailored Brands, Inc. ("Tailored Brands", or together the "Company").
Tailored Brands Announces Phased Store Reopening Plans
The number of global cases of the coronavirus that causes COVID-19 edged closer to half a million on Thursday, and U.S. jobless claims soared to a historic level as workers were laid off or furloughed as non-essential services were ordered to close.
The coronavirus-caused closure will likely add to the company's mounting losses, including a profit decrease of nearly 75% for the most recent fiscal year.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Men's Wearhouse, Inc. (The) and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Tailored Brands said it furloughed workers, extended store closures and cut pay for upper-level managers and board members. Chief Executive Dinesh Lathi and the directors will see their pay halved.
Tailored Brands Provides COVID-19 Business Update
The cost reductions come as Jos. A. Bank's parent company extended its store closures through early May.
Some companies are softening the blow by extending health benefits. Others are sharing the pain with management pay cuts.
Tailored Brands, Inc. (NYSE: TLRD) announced today that its board of directors (the "Board") adopted a short-term shareholder rights plan (the "Rights Plan") to protect the best interests of all Tailored Brands shareholders. In adopting the Rights Plan, the Board has taken note of the substantial impact of the COVID-19 pandemic on market activity and increased volume and volatility in the trading of the Company’s stock.
Neiman Marcus has filed for bankruptcy in a restructuring that will transfer majority ownership of the retailer to its creditors.
Q4 2020 Tailored Brands Inc Earnings Call
Michael Burry, head of Scion Asset Management, disclosed that he has bought a net 700,000 more shares of Tailored Brands this year. He now owns 8.3% of the company.
Tailored Brands Inc. said Thursday that it will furlough all U.S. store workers and a "significant portion" of its distribution center and office workers after extending its store closures until May 4. Tailored Brands' portfolio includes Men's Wearhouse and Jos. A. Bank. The company's executives, including Chief Executive Dinesh Lathi, and full-time workers will also be taking tiered pay cuts. Pay for Lathi and the board will be halved. While the company's fulfillment centers are closed, customers can place e-commerce orders, but they will be fulfilled when the facilities are back in operation. Tailored Brands shares have plummeted 80% over the past year while the S&P 500 index is down 12.2%.
Investors need to pay close attention to Tailored Brands (TLRD) stock based on the movements in the options market lately.
All Five Below (FIVE) stores to remain temporarily shut until the situation normalizes.