Exhibit 99.1

 

UNITED STATES BANKRUPTCY COURT

 

MOR-1        
CASE NAME: Tailored Brands, Inc.   PETITION DATE: 08/02/20
CASE NUMBER: 20-33900   DISTRICT OF TEXAS: Southern

PROPOSED PLAN DATE: 9/25/2020   DIVISION: Houston

 

MONTHLY OPERATING REPORT SUMMARY

 

(Amounts in Thousands)            
MONTH  Aug-20   Sep-20   Oct-20 
REVENUES (MOR-6)   99,860                       
OPERATING INCOME (LOSS) (MOR-6)   (37,748)          
NET INCOME (LOSS) (MOR-6)   (55,808)          
PAYMENTS TO INSIDERS (MOR-9)   385           
PAYMENTS TO PROFESSIONALS (MOR-9)   259           
TOTAL DISBURSEMENTS (MOR-7)   (548,839)          

 

***The original of this document must be filed with the United States Bankruptcy Court and a copy must be sent to the United States Trustee***

 

       
       
REQUIRED INSURANCE MAINTAINED   EXP.
AS OF SIGNATURE DATE   DATE
UMBRELLA YES   05/01/21
D&O YES   11/15/20
PROPERTY YES   05/01/21
WORKERS COMP YES   05/01/21
VARIOUS YES   05/01/21

 

       CHECK ONE
Are all accounts receivable being collected within terms?   Yes ¨ No
Are all post-petition liabilities, including taxes, being paid within terms?   Yes ¨ No
Have all tax returns and other required government filings been timely paid?   Yes ¨ No
Have any pre-petition liabilities been paid?   Yes ¨ No

If so, describe  Payments made consistent with First Day Orders      

Are all funds received being deposited into Debtor in Possession bank accounts?   Yes ¨ No
Were any assets disposed of outside the normal course of business?   ¨ Yes No

If so, describe         

Are all U.S. Trustee Quarterly Fee Payments current?   Yes ¨ No

 

 

 

      What is the status of your Plan of Reorganization? Amended Plan Filed 9/25/20
ATTORNEY NAME: Matthew D. Cavenaugh     I certify under penalty of perjury that the following complete
  INITIALS ____
FIRM NAME: Jackson Walker LLP   Monthly Operating Report (MOR), consisting of MOR-1 through
ADDRESS: 1401 McKinney St.   DATE  ______ MOR-9 plus attachments, is true and correct.
  Suite 1900          
CITY, STATE, ZIP: Houston, Texas 77010   UST USE ONLY SIGNED   /s/ Holly Etlin Chief Restructuring Officer
TELEPHONE/FAX: 713-752-4200 / 713-752-4221     (ORIGINAL SIGNATURE) TITLE
MOR-1         Holly Etlin   9/29/2020
        (PRINT NAME OF SIGNATORY) DATE

[1]  

 

A complete list of each of the Debtors in these chapter 11 cases may be obtained on the website of the Debtors’ claims and noticing agent at http://cases.primeclerk.com/TailoredBrands. The location of the Debtors’ service address in these chapter 11 cases is: 6100 Stevenson Boulevard, Fremont, California 94538. 

 

Page 1 of 13

 

 

CASE NAME: Tailored Brands, Inc.
CASE NUMBER: 20-33900

 

Notes to the Monthly Operating Report

 

INTRODUCTION:

 

This monthly operating report is unaudited and does not purport to represent financial statements prepared in accordance with GAAP nor are they intended to fully reconcile to the financial statements prepared by the Debtors. Unlike the consolidated financial statements, the MOR reflects the assets and liabilities of the Debtor(s), except where otherwise indicated. Information contained in the MOR has been derived from the Debtor’s books and records. Therefore, in order to comply with their obligations to provide monthly operating reports currently during these Chapter 11 Cases, the Debtors have prepared this monthly operating report using the best information presently available to them, which has been collected, maintained, and prepared in accordance with their historical accounting practices. This monthly operating report is, thus, true and accurate to the best of the Debtors’ knowledge, information and belief based on current available data. The results of operations and financial position contained herein are not necessarily indicative of results that may be expected for any other period or for the full year and may not necessarily reflect the consolidated results of operations and financial position of the Debtors in the future.

 

GENERAL METHODOLOGY:

 

The Debtors prepared this Monthly Operating Report relying primarily upon the information set forth in their books and records. Consequently, certain transactions that are not identified in the normal course of business in the Debtors’ books and records may not be included in this Monthly Operating Report. Nevertheless, in preparing this Monthly Operating Report, the Debtors made best efforts to supplement the information set forth in their books and records with additional information concerning transactions that may not have been identified therein. The Debtors' fiscal periods do not align with calendar months. The fiscal period reported for August 2020 is August 2 - August 29.

 

RESERVATION OF RIGHTS:

 

Given the complexity of the Debtors’ business, inadvertent errors, omissions or over inclusion of contracts or leases may have occurred. Accordingly, the Debtors hereby reserve all of their rights to dispute the validity, status, enforceability, or executory nature of any claim amount, representation or other statement in this Monthly Operating Report and reserve the right to amend or supplement this Monthly Operating Report, if necessary, but shall be under no obligation to do so.

 

Notes to MOR-2:

 

Balance sheet is presented as the combined total of Debtor entities in these cases and does not include eliminating accounting entries prepared in accordance with GAAP. Furthermore, this information is based on unaudited information, which may not reconcile to the Debtors' final consolidated financial statements for the period. Cash balances in balance sheet include cash not included in bank accounts, such as cash on hand, cash in transit and other accruals.

 

Notes to MOR-3:

 

Balance sheet is presented as the combined total of Debtor entities in these cases and does not include eliminating accounting entries prepared in accordance with GAAP. Furthermore, this information is based on unaudited information, which may not reconcile to the Debtors' final consolidated financial statements for the period. Accounts payable accruals may include invoices that had not been evaluated as liabilities subject to compromise as of month end. In this report these amounts are assumed to be post-petition obligations, pending the Debtors' normal-course invoice processing assessment.

 

Page 2 of 13

 

 

CASE NAME: Tailored Brands, Inc.
CASE NUMBER: 20-33900

 

Notes to the Monthly Operating Report

 

Notes to MOR-4:

 

The Debtors have sought to allocate liabilities between the prepetition and postpetition periods based upon the information available at the time of, and research conducted in connection with, the preparation of this MOR. As additional information becomes available and further research is conducted, the Debtors’ allocation of liabilities between the prepetition and postpetition periods may change. The liability information, except as otherwise noted, is listed as of the close of business as of the end of the month. Accordingly, the Debtors reserve all rights to amend, supplement or otherwise modify this MOR as necessary and appropriate. Accrued expenses have not been evaluated as liabilities subject to compromise and are subject to material change.

 

Notes to MOR-5:

 

Aging represents open and outstanding invoices that have been entered into the Debtors' accounts payable system. The aging does not include accruals for invoices not yet received or approved and is aged based on due date.

 

Accounts receivable aging only represents trade receivables. The balance of accounts receivable primarily consists of credit card receivables, credit card reserves and credits available under the CARES act.

 

Notes to MOR-6:

 

August amounts are from the entire fiscal month of August, which was August 2 through August 29.

 

Notes to MOR-7:

 

Although payment of prepetition claims is generally not permitted, the Bankruptcy Court has authorized the Debtors to pay certain prepetition claims in designated categories and subject to certain terms and conditions. This relief generally was designed to preserve the value of the Debtors’ business and assets. The Debtors have paid and continue to pay undisputed post petition obligations in the ordinary course of business.

 

Intercompany receipts and disbursements are excluded from this report. Based on centralized cash management practices, non- Debtor entities may make payments on behalf of other Debtor entities. To conform to U.S. Trustee disbursement reporting requests to track disbursements by Debtor and for purposes of quarterly fee calculations, the Debtors have made a reasonable effort to assign these disbursements to the entity on whose behalf the payment was made. However, this assignment may differ from the final intercompany accounting. Both Receipts and Disbursements are provided on book basis.

 

Notes to MOR-8:

 

The Debtors perform all bank account reconciliations in the ordinary course of business. Copies of the bank account statements and reconciliations are available for inspection upon request by the Office of the United States Trustee. Balances represent book balance.

 

Notes to MOR-9:

 

The list of insiders is consistent with public disclosures of Tailored Brands, Inc. and other filings associated with this Chapter 11 case. Payments to ordinary course professionals or consultants are not included in MOR-9.

 

Page 3 of 13

 

 

CASE NAME: Tailored Brands, Inc.  
CASE NUMBER: 20-33900  

 

UNITED STATES BANKRUPTCY COURT

MOR-2 - COMPARATIVE BALANCE SHEETS

 

PETITION DATE: 08/02/20  
DISTRICT OF TEXAS: Southern  
PERIOD: As of August 29, 2020  

 

COMPARATIVE BALANCE SHEETS

(Amounts in Thousands)

 

Unaudited  TLRD   TLRD   TLRD 
   MONTH   MONTH   MONTH 
ASSETS  Aug-20   Sep-20   Oct-20 
CURRENT ASSETS               
Cash and cash equivalents  $39,412           
Restricted cash   80,920           
Accounts receivable, net   23,739           
Inventories   676,165           
Assets held for sale   0           
Other current assets   110,264           
TOTAL CURRENT ASSETS  $930,500   $0    0 
Noncurrent assets:               
Property and equipment, net  $304,160           
Operating lease right-of-use assets   648,214           
Rental product, net   99,088           
Goodwill   0           
Intangible assets, net   23,534           
Other assets   1,182           
TOTAL NONCURRENT ASSETS  $1,076,178   $0   $0 
                
TOTAL ASSETS  $2,006,678   $0   $0 

 

*See MOR Notes
MOR-2

 

Page 4 of 13

 

 

CASE NAME: Tailored Brands, Inc.  
CASE NUMBER: 20-33900  

 

UNITED STATES BANKRUPTCY COURT

MOR-3 - COMPARATIVE BALANCE SHEETS

 

PETITION DATE: 08/02/20  
DISTRICT OF TEXAS: Southern  
PERIOD: As of August 29, 2020  

 

COMPARATIVE BALANCE SHEETS

(Amounts in Thousands)

 

Unaudited            
   MONTH   MONTH   MONTH 
LIABILITIES  Aug-20   Sep-20   Oct-20 
LIABILITIES               
POST-PETITION LIABILITIES (MOR-4)  $1,308,480           
                
LIABILITIES SUBJECT TO COMPROMISE (LSTC) *See MOR Notes               
TOTAL LIABILITIES SUBJECT TO COMPROMISE   1,268,100   $0   $0 
                
TOTAL LIABILITIES  $2,576,580   $0   $0 
EQUITY               
Common stock   512           
Capital in excess of par   518,322           
Accumulated deficit   (1,077,515)          
Accumulated other comprehensive loss   (1,221)          
Treasury stock, at cost   (10,000)          
TOTAL STOCKHOLDERS' DEFICIT  $(569,902)  $0   $0 
TOTAL LIABILITIES & EQUITY  $2,006,678   $0   $0 

 

*See MOR Notes
MOR-3

 

Page 5 of 13

 

 

CASE NAME: Tailored Brands, Inc.  
CASE NUMBER: 20-33900  

 

UNITED STATES BANKRUPTCY COURT

MOR-4 - SCHEDULE OF POST-PETITION LIABILITIES

 

PETITION DATE: 08/02/20  
DISTRICT OF TEXAS: Southern  
PERIOD: As of August 29, 2020  

 

COMPARATIVE BALANCE SHEETS

(Amounts in Thousands)

 

Unaudited

   MONTH   MONTH   MONTH 
   Aug-20   Sep-20   Oct-20 
Current liabilities:               
Accounts payable   76,691           
Accrued expenses and other current liabilities   222,396           
Current portion of operating lease liabilities   186,052                   
Current portion of long-term debt   260,000           
Total current liabilities  $745,139           
                
Noncurrent liabilities:               
Operating lease liabilities   527,055           
Deferred taxes and other liabilities   36,286           
Total noncurrent liabilities  $563,341           
TOTAL POST-PETITION LIABILITIES (MOR-3)  $1,308,480           

 

*See MOR Notes

 

MOR-4

 

Page 6 of 13

 

 

CASE NAME: Tailored Brands, Inc.  
CASE NUMBER: 20-33900  

 

UNITED STATES BANKRUPTCY COURT

MOR-5 - POST-PETITION AP/AR AGING

 

PETITION DATE: 08/02/20  
DISTRICT OF TEXAS: Southern  
PERIOD: As of August 29, 2020  

 

AGING OF POST-PETITION PAYABLES

(Amounts in Thousands)

 

Unaudited

DAYS  Aug-20   Sep-20   Oct-20 
Current  $6,519                    
1-30   29,207           
31-60   5,205           
61+   1,114           
TOTAL  $42,045           

 

AGING OF ACCOUNTS RECEIVABLES

(Amounts in Thousands)

 

Unaudited

DAYS  Aug-20   Sep-20   Oct-20 
Current  $77                       
1-30   85           
31-60   16           
61+   249           
TOTAL  $426           

 

*See MOR Notes

 

MOR-5

 

Page 7 of 13

 

 

CASE NAME: Tailored Brands, Inc.  
CASE NUMBER: 20-33900  

 

UNITED STATES BANKRUPTCY COURT

MOR-6 - CONSOLIDATED STATEMENTS OF OPERATIONS

 

PETITION DATE: 08/02/20  
DISTRICT OF TEXAS: Southern  
PERIOD: Aug 2, 2020 - Aug 29, 2020  

 

Consolidated Statements of Operations

(Amounts in Thousands)

 

Unaudited

   MONTH   MONTH   MONTH 
   Aug-20   Sep-20   Oct-20 
Revenues and other:               
Retail clothing product   78,455                     
Rental services   15,690           
Alteration and other services   5,715           
   $99,860           
Expenses:               
Costs of Sales  $85,421           
Advertising expense   4,008           
Selling, general and administrative expenses   48,179           
   $137,608           
Other income and (expenses):               
Interest income  $3           
Interest expense   (3,700)          
                
    (3,697)          
                
Reorganization costs   (23,059)          
                
Loss before income taxes  $(64,504)          
Benefit for income taxes   (8,696)          
Net loss  $(55,808)          

 

*See MOR Notes

 

MOR-6

 

Page 8 of 13

 

 

CASE NAME: Tailored Brands, Inc.  
CASE NUMBER: 20-33900  

 

UNITED STATES BANKRUPTCY COURT

MOR-7 - CASH RECEIPTS AND DISBURSEMENTS

 

PETITION DATE: 08/02/20  
DISTRICT OF TEXAS: Southern  
PERIOD: Aug 2, 2020 - Aug 29, 2020  

 

Cash Receipts and Disbursements

(Amounts in Thousands)

 

Company Name  Cash Receipts   Cash Disbursements 
JA Apparel Corp.  $4   $(0)
Jos. A. Bank Clothiers, Inc.   20,813    (20,849)
Joseph Abboud Manufacturing Corp   -    - 
K&G Men's Company Inc.   16,072    (19,575)
Moores Retail Group Corp.   0    - 
Moores The Suit People Corp.   10,530    (10,256)
MWDC Holding Inc.   -    - 
Nashawena Mills Corp.   -    - 
Renwick Technologies, Inc.   -    - 
Tailored Brands Gift Card Co LLC   -    - 
Tailored Brands Purchasing LLC   -    - 
Tailored Brands, Inc.   1,509    (1,509)
Tailored Shared Services, LLC   4,119    (12,130)
TB UK Holding Limited   -    - 
The Joseph A. Bank Mfg. Co., Inc.   -    - 
The Men's Wearhouse, Inc.   434,522    (483,690)
TMW Merchants LLC   -    - 
Tailored Brands Worldwide Purchasing Co.   192    (829)
Total  $487,761   $(548,839)

 

*See MOR Notes

 

MOR-7

 

Page 9 of 13

 

 

CASE NAME: Tailored Brands, Inc.  
CASE NUMBER: 20-33900  

 

UNITED STATES BANKRUPTCY COURT

MOR-8 - CASH RECONCILIATION

 

PETITION DATE: 08/02/20  
DISTRICT OF TEXAS: Southern  
PERIOD: As of August 29, 2020  

 

Bank Account Information

(Amounts in Thousands)

 

      ACCOUNT NUMBER   BANK 
BANK NAME  COMPANY NAME  ENDING   BALANCE 
BANK OF AMERICA  JA Apparel Corp.   0812    8 
BANK OF AMERICA  JA Apparel Corp.   6780    - 
BANK OF AMERICA  JA Apparel Corp.   1966    - 
BANK OF AMERICA  JA Apparel Corp.   1882    151 
BANK OF AMERICA  Jos. A. Bank Clothiers, Inc.   6750    32 
BANK OF AMERICA  Jos. A. Bank Clothiers, Inc.   9015    283 
BANK OF AMERICA  Jos. A. Bank Clothiers, Inc.   9028    - 
BANK OF AMERICA  Jos. A. Bank Clothiers, Inc.   9031    - 
BB&T  Jos. A. Bank Clothiers, Inc.   1413    2 
BBVA COMPASS  Jos. A. Bank Clothiers, Inc.   5091    6 
FIFTH THIRD  Jos. A. Bank Clothiers, Inc.   4544    9 
JPMORGAN CHASE  Jos. A. Bank Clothiers, Inc.   5203    20 
KEY BANK  Jos. A. Bank Clothiers, Inc.   1787    3 
M&T BANK  Jos. A. Bank Clothiers, Inc.   4286    4 
PNC BANK  Jos. A. Bank Clothiers, Inc.   0275    14 
REGIONS BANK  Jos. A. Bank Clothiers, Inc.   2665    12 
TD BANK  Jos. A. Bank Clothiers, Inc.   5063    6 
US BANK  Jos. A. Bank Clothiers, Inc.   9441    6 
WELLS FARGO  Jos. A. Bank Clothiers, Inc.   1077    48 
BANK OF AMERICA  K&G Men's Company Inc.   5103    16 
BANK OF AMERICA  K&G Men's Company Inc.   5111    (11)
BANK OF AMERICA  K&G Men's Company Inc.   1178    - 
BANK OF AMERICA  K&G Men's Company Inc.   4984    - 
BANK OF AMERICA  K&G Men's Company Inc.   3284    - 
BANK OF AMERICA  K&G Men's Company Inc.   3297    94 
BANK OF AMERICA  K&G Men's Company Inc.   3307    795 
FIFTH THIRD  K&G Men's Company Inc.   6978    348 
BANK OF MONTREAL  Moores The Suit People Corp.   -521    13 
CIBC  Moores The Suit People Corp.   7119    20 
JPMORGAN CHASE  Moores The Suit People Corp.   0751    4,241 
RBC  Moores The Suit People Corp.   25-3    11 
SCOTIA BANK  Moores The Suit People Corp.   2418    313 

 

Page 10 of 13

 

 

CASE NAME: Tailored Brands, Inc.  
CASE NUMBER: 20-33900  

 

UNITED STATES BANKRUPTCY COURT

MOR-8 - CASH RECONCILIATION

 

PETITION DATE: 08/02/20  
DISTRICT OF TEXAS: Southern  
PERIOD: As of August 29, 2020  

 

SCOTIA BANK  Moores The Suit People Corp.   2612    63 
SCOTIA BANK  Moores The Suit People Corp.   2817    5,856 
SCOTIA BANK  Moores The Suit People Corp.   8815    - 
SCOTIA BANK  Moores The Suit People Corp.   5914    786 
SCOTIA BANK  Moores The Suit People Corp.   6015    741 
SCOTIA BANK  Moores The Suit People Corp.   0414    52 
SCOTIA BANK  Moores The Suit People Corp.   9912    422 
TD CANADA TRUST  Moores Retail Group Corp.   3655    127 
BANK OF AMERICA  Nashawena Mills Corp.   5907    8 
BANK OF AMERICA  Renwick Technologies, Inc.   1262    - 
BANK OF AMERICA  Tailored Brands, Inc.   5974    - 
BANK OF AMERICA  Tailored Brands, Inc.   6241    - 
BANK OF AMERICA  TB UK Holding Limited   5802    1 
BANK OF AMERICA  Tailored Brands Worldwide Purchasin   5381    837 
BANK OF AMERICA  Tailored Shared Services, LLC   5958    156 
BANK OF AMERICA  Tailored Shared Services, LLC   5961    - 
BANK OF AMERICA  The Men's Wearhouse, Inc.   2871    (593)
BANK OF AMERICA  The Men's Wearhouse, Inc.   2905    (29)
BANK OF AMERICA  The Men's Wearhouse, Inc.   3053    260 
BANK OF AMERICA  The Men's Wearhouse, Inc.   0835    4,963 
BANK OF AMERICA  The Men's Wearhouse, Inc.   1110    - 
BANK OF AMERICA  The Men's Wearhouse, Inc.   1123    - 
BANK OF AMERICA  The Men's Wearhouse, Inc.   4447    390 
BANK OF AMERICA  The Men's Wearhouse, Inc.   4450    362 
BANK OF AMERICA  The Men's Wearhouse, Inc.   4463    546 
BANK OF AMERICA  The Men's Wearhouse, Inc.   4942    195 
BANK OF AMERICA  The Men's Wearhouse, Inc.   3590    2,343 
BANK OF AMERICA  The Men's Wearhouse, Inc.   3600    - 
BANK OF AMERICA  The Men's Wearhouse, Inc.   7313    - 
BANK OF AMERICA  The Men's Wearhouse, Inc.   6010    18 
BANK OF HAWAII  The Men's Wearhouse, Inc.   5567    3 
BB&T  The Men's Wearhouse, Inc.   1391    10 
FIFTH THIRD  The Men's Wearhouse, Inc.   9738    22 
HSBC  The Men's Wearhouse, Inc.   9585    2 
JPMORGAN CHASE  The Men's Wearhouse, Inc.   9762    14,016 
JPMORGAN CHASE  The Men's Wearhouse, Inc.   3698    133 
KEY BANK  The Men's Wearhouse, Inc.   2689    16 
PNC BANK  The Men's Wearhouse, Inc.   5202    92 

 

Page 11 of 13

 

 

CASE NAME: Tailored Brands, Inc.  
CASE NUMBER: 20-33900  

 

UNITED STATES BANKRUPTCY COURT

MOR-8 - CASH RECONCILIATION

 

PETITION DATE: 08/02/20  
DISTRICT OF TEXAS: Southern  
PERIOD: As of August 29, 2020  

 

REGIONS BANK  The Men's Wearhouse, Inc.   4418    25 
TD BANK  The Men's Wearhouse, Inc.   1533    19 
US BANK  The Men's Wearhouse, Inc.   1130    137 
WELLS FARGO  The Men's Wearhouse, Inc.   0476    263 
JPMORGAN CHASE  The Men's Wearhouse, Inc.   9722    80,920 
Total           119,605 

 

*See MOR Notes

 

MOR-8

 

Page 12 of 13

 

 

CASE NAME: Tailored Brands, Inc.  
CASE NUMBER: 20-33900  

 

UNITED STATES BANKRUPTCY COURT

MOR - 9 - PAYMENTS TO INSIDERS AND PROFESSIONALS [1]

 

PETITION DATE: 08/02/20  
DISTRICT OF TEXAS: Southern  
PERIOD: Aug 2, 2020 - Aug 29, 2020  

 

PAYMENTS TO INSIDERS AND PROFESSIONALS

(Amounts in Thousands)

 

Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section
101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals.

Also, for insiders, identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary).

 

      PERIOD 
INSIDERS: NAME/COMP TYPE     8/2/2020 - 8/29/2020 
Ask, Carrie Ann  Salary  $54 
Bragg II, James R  Salary   37 
Hansen II, Richard B  Salary   34 
Lathi, Dinesh Subhash  Salary   77 
Neutze, Mark  Salary   31 
Ricci, Steven James  Salary   28 
Rhodes, Archibald Alexander  Salary   35 
Sherman, Boris Peter  Salary   38 
Smith, Michael Shane  Salary   33 
Vazquez, John  Salary   19 
TOTAL INSIDERS (MOR-1)     $385 

 

      PERIOD 
PROFESSIONALS     8/2/2020 - 8/29/2020 
Morgan Lewis     $155 
Mourant (Cayman Counsel)      100 
Winstead (Local Counsel)      4 
TOTAL PROFESSIONALS (MOR-1)     $259 

 

*See MOR Notes

 

MOR-9

 

Page 13 of 13