The parent company of two popular men's clothing retailers, Men's Wearhouse and Jos. A. Bank, announced Tuesday that it will close hundreds of its stores, citing the coronavirus pandemic as the driving force behind the decision.
Tailored Brands, based in Houston, Texas, said it plans to shutter up to 500 of its store locations "over time." It wasn't clear which stores would close or if one brand would be affected more than the other.
The company also said it plans to cut 20% of its workforce.
"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," Tailored Brands president and CEO Dinesh Lathi said in a statement.
"While today’s announcement is a difficult one, we are confident these are the right next steps to protect our business and position us to more effectively compete in today’s environment.”
As of Feb. 1, Tailored Brands owned 1,450 U.S. stores. The company also owns Moores Clothing for Men, located primarily in Canada, and K&G Fashion Superstore, which has locations in 27 states. Its stock has fallen more than 83% this year, CNBC reported.
The news comes on the heels of a number of other major retailers announcing closures.
After filing for bankruptcy in May, J.C. Penney said 154 stores across 38 states would close as part of restructuring. European retailer Zara announced in June that it will close 1,000 stores in an effort to focus on online sales, which received a boost from stay-at-home orders during the pandemic.
In May, J.Crew filed for Chapter 11 bankruptcy. And earlier this month, Brooks Brothers, the storied fashion brand which boasts having dressed 40 presidents, filed for bankruptcy. The company said it was deciding which of its 250 stores to close.