(RTTNews) - Tailored Brands, Inc. (TLRD) said the company will make organizational changes that will result in the elimination of approximately 20% of its corporate positions by the end of the second quarter. The company expects to record a pre-tax charge of approximately $6 million in the second quarter for severance payments and other termination costs, all of which are cash costs. Also, Tailored Brands has identified up to 500 retail stores for potential closure over time. The company has not yet quantified the expense savings and costs related to potential store closures.
Tailored Brands CEO Dinesh Lathi said, "Unfortunately, due to the COVID-19 pandemic and its significant impact on our business, further actions are needed to help us strengthen our financial position so we can navigate our current realities."
Tailored Brands also announced that Jack Calandra, Executive Vice President, Chief Financial Officer and Treasurer, will leave the company as of July 31. In the near term, Calandra's responsibilities will be divided between Lathi and Holly Etlin, a Managing Director at AlixPartners who has been appointed to the newly created role of Chief Restructuring Officer.
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