Tailored Brands, Inc. has decided to extend the temporary closure of its retail stores until at least May 4, 2020. In conjunction with the decision to extend the store closure window, Tailored Brands announced it would implement additional cost reductions, including furloughing all U.S. store employees as well as a significant portion of employees in its distribution network and offices.
Commenting on the measures taken by the company, Tailored Brands President and CEO Dinesh Lathi said in a statement: “It was a very difficult decision to furlough employees and one that we did not take lightly; however, this is an important step to ensure the durability of our company and the livelihood it provides for so many.”
Tailored Brands added that the company will also implement tiered pay cuts for the CEO, executive vice presidents and senior vice presidents, for those who will be working full time during the period. Lathi and the board of directors will be taking a 50 percent pay reduction during the period.