The magic of 2020 continues, and another well-known American clothing retailer has fallen.
Recently, Tailored Brands, the parent company of Men’s Wearhouse, a well-known American men’s clothing retailer, said that it may start as early as the It filed for bankruptcy protection in the third quarter as the coronavirus crisis continued to hit its sales.
Affected by the above news, Tailored Brands (TLRD.N) fell sharply at the opening on July 27, and once fell by more than 36% during the session. As of press time, it was trading at US$0.40 per share, down 33.22%, and its latest total market value was US$19.56 million.
Another well-known American clothing retailer will file for bankruptcy
More than 500 offline stores may be closed
Recently, Tailored Brands stated in a document submitted to the U.S. Securities and Exchange Commission: “We have determined that now Significant doubt exists about our ability to continue as a going concern. Although we are evaluating several alternatives, it is likely that we will reorganize under applicable bankruptcy laws, possibly as early as the third quarter of fiscal 2020 (i.e., commencing on August 2, 2020) Proceed.”
It is reported that Tailored Brands owns the brands Men’s Wearhouse and Jos.A.Bank, of which the former has Thousands of stores. On March 11, 2014, Men’s Wearhouse acquired Jos. A. Bank (JOSB), a well-known American men’s clothing retailer, for approximately US$1.8 billion.
The company said earlier this month that it planned to gradually close up to 500 of its stores and lay off 20% of its white-collar employees. The company also said it no longer meets the New York Stock Exchange’s listing standards.
Affected by the news, Tailored Brands’ stock price has been depressed recently. As of press time, TLRD has fallen by 90.27% this year, and its latest total market value fell below US$20 million.
Tailored Brands’ net profit plummeted nearly 200%
Serious impact on cash flow
On July 27, Tailored Brands released a financial report, which showed that Tailored Brands’ total operating income in the previous quarter was 28.81 billion, a year-on-year decrease of 11%; net profit was -82 million U.S. dollars, a year-on-year decrease of 198%. In addition, Tailored Brands sales fell 60% to $286.7 million, with total e-commerce sales in the first quarter, including rental services, falling 31.9% compared with the first quarter last year.
Regarding the decline in turnover, Tailored Brands stated that the outbreak of the new coronavirus has had a significant impact on our performance as of May 2, 2020. There was a significant impact on the three-month business, financial condition, results of operations and cash flow.
On March 17, 2020, Tailored Brands announced the temporary closure of our retail stores in the United States and Canada until the end of the first quarter. In conjunction with our decision to extend our temporary store closures, we are also furloughing all U.S. store associates, most of our U.S. distribution network, and most of our office associates, and we are furloughing all of our Canadian store associates and most of our Canadian associates in our Canadian distribution network and offices Temporary layoffs were implemented.
Up to 500 store closures may occur in the future, as well as related opportunities to reduce and adjust our store organization and supply chain infrastructure. Additionally, there is uncertainty about the impact of the COVID-19 pandemic and its depth and duration, increases in unemployment, and the possibility that employees may be furloughed or temporarily laid off.
In addition, Tailored Brands has taken steps to increase liquidity and maintain financial flexibility, significantly reducing inventory purchases, capital expenditures, advertising expenditures and store and other general and administrative costs, as well as The majority of our employees are on furlough and temporary pay reductions. Additionally, during the first quarter of fiscal 2020, Tailored Brands suspended rent payments on operating leases in April and May and negotiated rent deferrals for certain stores and repaid such deferral amounts from the end of 2020 into 2021.
Over 3,600 companies in the United States filed for bankruptcy protection
Bankruptcy in June The business surged 43% year-on-year
According to news on July 28, the American firearms giant Remington applied to the court for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code on Monday local time. This is The 204-year-old company filed for bankruptcy protection again after two years. The company listed assets and liabilities in bankruptcy filings as ranging from $100 million to $500 million.
Remington was founded in 1816 and is the oldest and largest firearms manufacturer in the United States. The company filed for bankruptcy protection in March 2018 and emerged from bankruptcy under creditor ownership that same year.
According to statistics from the American Bankruptcy Institute, more than 100,000 small businesses in the United States have permanently closed down since the beginning of March.
On July 22, according to data from legal services company Epiq Global, more than 3,600 U.S. companies have filed for bankruptcy protection in the first half of this year as of June 30, which is more than last year. A surge of 26% over the same period. Only in JuneAs the epidemic rebounds across the United States and economic recovery stalls, bankruptcy filings by U.S. companies surged 43% compared with the same period last year.
Many economic experts believe that the worse situation is yet to come. Among them, retailers and energy companies are particularly vulnerable. For example, companies such as oil producer Lonestar Resources and apparel retailer Tailored Brands have recently skipped bond payments, a common sign of corporate financial distress.
“As government relief programs designed to stabilize the economy begin to expire, filing for bankruptcy provides protection for families and businesses facing increasing financial distress.” Executive Director, American Bankruptcy Institute Amy Quackenboss (Amy Quackenboss) said, “We expect (bankruptcy) filings will start to increase as a result.”
The current bankruptcy rules in the United States are designed to help companies faster Complete bankruptcy proceedings quickly and reduce paperwork costs. Bankruptcy does not necessarily mean the death of a business. Some companies can use bankruptcy protection to restructure their debt and operations and become a more competitive company.
The White House economic adviser still believes that the economy will recover in a “V” shape
Currently, the United States is experiencing an economic crisis caused by record high unemployment and shrinking GDP, with the number of bankrupt companies growing and corporate earnings shrinking.
Under this situation, White House economic adviser Larry Kudlow still insists that despite the continued increase in new crown cases across the United States, the U.S. economy is recovering from the Great Recession. A rapid recovery from the worst downturn since.
Kudlow said on Monday: “There’s a huge housing boom, a retail boom, an auto boom. The trucking industry is still very strong. So far, employment is booming. Early on. The number of jobless claims and continuing claims are falling rapidly, and I think the unemployment rate and job growth in July will look good.”
Last week’s data showed that, U.S. second-hand home sales increased by 20.7% in June, after falling by 9.7% in the previous month. A separate report showed that U.S. manufacturing returned to strength in June, expanding for the first time since February. While the number of Americans filing initial claims for unemployment benefits increased for the first time in nearly four months, continuing claims fell by more than 1 million, suggesting employers are rehiring unemployed workers.
“I think the ‘V-shaped’ economic recovery and the 20% growth forecast for the second half of the year remain intact,” Kudlow said. At the same time, he pointed out that most parts of the United States have lifted previous lockdown restrictions and allowed businesses to reopen.
Kudlow’s comments come as Republican senators prepare to announce the next $1 trillion stimulus package, which is expected to be expanded (but significantly reduced) soon. Expiring unemployment benefits and sending a new round of $1,200 stimulus checks in August to American adults earning less than $75,000 and allocating tens of billions of dollars to schools and universities.
The U.S. Congress has approved three large stimulus packages totaling nearly $3 trillion to offset the economic pain caused by the outbreak and subsequent lockdown measures. </p
