BY NATHAN BOMEY for USA TODAY
Dressing up is being dressed down – and that’s bad news for retailers that specialize in traditional office clothes.
After years of business attire becoming increasingly casual, the sudden transition to working from home for millions of Americans has undermined retailers that sell dress clothes.
Men’s Wearhouse, Jos. A. Bank, Brooks Brothers, Lord & Taylor, Ann Taylor, Loft and Neiman Marcus are among the retailers whose parent companies have entered Chapter 11 bankruptcy in recent weeks, having experienced a sudden drop-off in sales due in part to what industry leaders are calling “casualization.”
While most nonessential retailers have posted sales declines due to temporary store shutdowns and a sharp drop in foot traffic during the COVID-19 pandemic, companies that specialize in dress clothes are in the worst shape – especially menswear shops.
Tailored Brands bankruptcy:Men’s Wearhouse, Jos. A. Bank owner files for Chapter 11 protection
Brooks Brothers store closings planned:Retailer files for Chapter 11 bankruptcy protection
Take Men’s Wearhouse. In 2011, 1 in 5 suits sold in America were purchased at one of the company’s more than 1,200 stores, according to a court filing.
Less than a decade later, demand for suits has collapsed. Tailored Brands, which owns Men’s Wearhouse and Jos. A. Bank, filed for Chapter 11 protection this month. The retailer plans to close up to 500 locations.
Revenue for men’s clothing stores is expected to decline by 13% in 2020, according to research firm IBISWorld, and continue falling for several years.
“People are shopping more online, and men are just not buying suits,” said Helena Song, an S&P credit analyst who tracks retailers, including menswear companies.
Jamie Johnston is among them. Johnston, a Toronto real estate agent, remembers a time not too long ago when the area surrounding his downtown office was swarming with people in suits. Those days now feel like a distant memory. Read more from USA TODAY.
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