The sharp decline in consumer interest in office wear has caused difficulties for a number of brands.
So, Tailored Brands, the company that owns brands such as Men's Wearhouse and Jos. A. Bank is considering filing for bankruptcy. This would allow it to continue its activities, having restructured and eliminated some weaknesses.
The reason for the possible bankruptcy lies in a significant decrease in consumer interest in business suits - office workers who wear suits have started working from home, and events such as weddings have been postponed. However, sales of this type of clothing began to fall even before the pandemic, which led to the emergence of almost a billion dollars in debt for Tailored Brands.
A spokesperson for Tailored Brands declined to speak to reporters, saying "it is company policy not to comment on market rumors or speculation."
Other retailers, whose product range also included office wear, were also affected. For example, sales of suits and dresses from brand Banana Republicowned by Gap Inc.. In this case, the situation was aggravated by the fact that while filling warehouses with business clothes, the retailer was unable to provide sufficient stocks of everyday items. And this led to a reduction in online sales from Banana Republic immediately to 47%.
Brooks Brothers was not in the best situation either, which is now actively closing stores and can stop the activities of 3 factories at once, which will lead to the dismissal of 700 workers. There is already open talk of a possible bankruptcy. It should be noted here that this brand, like the ones listed above, began to experience difficulties even before the start of the pandemic, which only exacerbated its problems.