Lincolnshire's Jos. A Banks Closes As Parent Declares Bankruptcy

Eric DeGrechie
·3 min read

LINCOLNSHIRE, IL — Citing a collapse in consumer demand for business apparel amid the coronavirus pandemic, the parent company of suit merchants Men's Wearhouse and Jos. A. Bank declared bankruptcy Sunday.

At least nine Illinois locations — including one in Lincolnshire — are due to close immediately. An undisclosed number of other stores in the state are also expected to permanently shutter.

While many retailers were already facing a precarious future even before the emergence of COVID-19, the formalwear sector has been especially hard-hit by a precipitous drop in demand.

Only 6 percent of people working from home are wearing business attire to do so, according to a June survey from the Society for Human Resource Management. And nearly half of respondents in the survey reported they are not wearing work-appropriate pants, even among those who have to wear business attire for video calls.

Tailored Brands, with about 1,400 North American stores and about 18,000 employees, filed for Chapter 11 protection after announcing plans last month to close up to 500 stores and cut 20 percent of jobs.

Since the COVID-19 pandemic emerged in March, the company temporarily shuttered all its retail locations, furloughed or laid off all employees, borrowed $300 million and stopped paying rent for some stores, according to The Wall Street Journal, which first reported the firm's bankruptcy filing.

Announcing the bankruptcy, President and CEO Dinesh Lathi said the company had seen positive results in the first two months of the year.

“However, the unprecedented impact of COVID-19 requires us to further adapt and evolve,” Lathi said. In June, the firm announced more than 40 percent of its stores had reopened, but the pandemic had slashed first-quarter sales results by 60 percent compared to the year before.

"While it’s still early and the operating environment remains highly uncertain, we anticipate sales will rebuild gradually during the remainder of the year," Lathi said at the time. "We are planning the business conservatively and will continue to operate with discipline to preserve our liquidity as we navigate this uncertain environment.”

In July, the company skipped a debt payment of more than $6 million, even though it had sufficient of cash on hand — over $200 million as of early June — to make its payments, the Journal reported.

Men's Wearhouse, founded in 1973 by longtime suit pitchman George Zimmer and his father, acquired Jos. A. Bank in June 2014, becoming the holding company Tailored Brands 2016. The firm also owns the Moores Clothing for Men Brand, which has over 100 stores in Canada, and the K&G Fashion Superstore brand.

Tailored Brands' announcement is the latest major retailer to announce plans to shutter locations, including J. Crew, J.C. Penny, Pier One and GNC.

A spokesperson hired by the bankrupt company declined to provide a list of store slated to close, but in a court filing Sunday in Texas bankruptcy court, company representatives disclosed plans to liquidate locations and vacate the premises at a list of 100 stores..

The Illinois locations slated for immediate closure include the two Men's Wearhouse and seven Jos. A. Bank stores listed below, according to the filing.

Men's Wearhouse

  • 4954 W. 95th Street, Oak Lawn

  • 3232 Lake Ave., Suite 190, Wilmette

Jos. A. Bank

  • 2200 S. Randall Road, Algonquin

  • 1847 N. Clybourn Ave., Chicago

  • 500 W. Madison, Lobby, Chicago

  • 1850 2nd St., Suite 100, Highland Park

  • 970A Milwaukee Ave., Lincolnshire

  • 55 S. Main St. Suite 1-C, Naperville

  • 1199 Wilmette Ave., Suite 1, Wilmette

This article originally appeared on the Buffalo Grove Patch