{"id":53709,"date":"2020-06-15T19:53:21","date_gmt":"2020-06-16T00:53:21","guid":{"rendered":"https:\/\/olduvai.ca\/?p=53709"},"modified":"2020-06-15T19:53:22","modified_gmt":"2020-06-16T00:53:22","slug":"an-epically-bad-week-for-us-brick-and-mortar-retailers-and-landlords","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=53709","title":{"rendered":"An Epically Bad Week for US Brick-and-Mortar Retailers and Landlords"},"content":{"rendered":"\n

An Epically Bad Week for US Brick-and-Mortar Retailers and Landlords<\/a><\/h3>\n\n\n\n

Winners in this crisis: Ecommerce \u2013 for retailers that don\u2019t sell men\u2019s office & formal wear \u2013 and for sure, lawyers.<\/strong><\/p>\n\n\n\n

Tailored Brands<\/strong>, a holding company for men\u2019s apparel stores, including Men\u2019s Wearhouse<\/strong> and JoS. A. Bank<\/strong>, is considering filing for bankruptcy, according to sources cited by Bloomberg<\/a> on June 8. Bankruptcy would allow the company to shut weaker locations while keeping other stores operating, the sources said.<\/p>\n\n\n\n

The company confirmed in an SEC filing<\/a> on June 10 that it may have to file for bankruptcy:<\/p>\n\n\n\n

\u201cIf 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,\u201d it said.<\/p>\n\n\n\n

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<\/a>. Overall revenues fell every year since 2016.<\/p>\n\n\n\n

In an update<\/a> on June 10, Tailored Brands said that total revenues in the first quarter (ended May 2) collapsed by 60% year-over-year, with even ecommerce sales plunging 32%.<\/p>\n\n\n\n

The company started re-opening its stores on May 7, and had 634 stores open by June 5. So how well are these reopened stores doing?<\/p>\n\n\n\n

In the week ended June 5, for stores open at least the entire week, average comparable sales at Men\u2019s Wearhouse were down 65%, at Jos. A. Bank 78%, and at K&G 40%.<\/p>\n\n\n\n

That total ecommerce sales, including rental services, plunged 32% in the second quarter through June 5th \u2013 when retail has largely switched to ecommerce, and everyone else\u2019s ecommerce sales are booming \u2013 is a sign that work-from-home has crushed demand for clothes worn to the office; and that the postponements of events such as weddings have crushed the demand for renting formal wear.<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

An Epically Bad Week for US Brick-and-Mortar Retailers and Landlords Winners in this crisis: Ecommerce \u2013 for retailers that don\u2019t sell men\u2019s office & formal wear \u2013 and for sure, lawyers. Tailored Brands, a holding company for men\u2019s apparel stores, including Men\u2019s Wearhouse and JoS. A. Bank, is considering filing for bankruptcy, according to sources cited by Bloomberg on June […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5102,855,4254,4255],"class_list":["post-53709","post","type-post","status-publish","format-standard","hentry","category-economics","tag-retail-stores","tag-viral-pandemic","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53709","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53709"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53709\/revisions"}],"predecessor-version":[{"id":53710,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53709\/revisions\/53710"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}