An Epically Bad Week for US Brick-and-Mortar Retailers and Landlords

[marmar]

An Epically Bad Week for US Brick-and-Mortar Retailers and Landlords
by Wolf Richter • Jun 14, 2020 •

Winners in this crisis: Ecommerce – for retailers that don’t sell men’s office & formal wear – and for sure, lawyers.
By Wolf Richter for WOLF STREET.


Tailored Brands, a holding company for men’s apparel stores, including Men’s Wearhouse and JoS. A. Bank, is considering filing for bankruptcy, according to sources cited by Bloomberg on June 8. Bankruptcy would allow the company to shut weaker locations while keeping other stores operating, the sources said.

The company confirmed in an SEC filing on June 10 that it may have to file for bankruptcy:

“If the effects of the COVID-19 pandemic are protracted and we are unable to increase liquidity and/or effectively address our debt position, we may be forced to scale back or terminate operations and/or seek protection under applicable bankruptcy laws. This could result in a complete loss of shareholder value,” it said.

But its problems started years ago, including the misbegotten $1.8 billion acquisition of JoS. A. Bank in 2014, whose revenues promptly went into a death spiral. Overall revenues fell every year since 2016. .............(more)

https://wolfstreet.com/2020/06/14/an-epically-bad-week-for-us-brick-and-mortar-retailers-and-landlords/

[Sherman A1]

1. This is just the start

3rd and 4th quarter are going to be ugly.