The sharp decline in consumer interest in office clothes has caused difficulties for a number of brands.
Thus, Tailored Brands, a 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 operations by restructuring and removing some of its weaknesses.
The reason for the potential bankruptcy lies in a significant decrease in consumer interest in business suits - office workers who wear suits began 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 to Tailored Brands.
A representative for Tailored Brands refused to talk to journalists, saying that "in accordance with the company's policy, it will not comment on market rumors or speculation."
Other retailers, whose range of products also included office clothes, were also affected. For example, sales of suits and dresses under the Banana Republic brand owned by Gap Inc. In this case, the situation was aggravated by the fact that by filling the warehouses with business clothes, the retailer could not provide sufficient stocks of everyday items. This led to a 47% reduction in online sales for Banana Republic.
Not in the best situation was the company Brooks Brothers, which is now actively closing stores and is closing three factories at once, leading to the dismissal of 700 employees. Talks about possible bankruptcy are already open. It should be noted that this brand, like the ones above, began to experience difficulties even before the pandemic, which only exacerbated its problems.