Casual Male files for Chapter 11 - men's apparel retailer

Discount Store News, April 23, 1990

Casual Male Files For Chapter 11

SHREWSBURY, Mass. -- Casual Male Corp., a specialty men's wear retailer comprising 308 stores, filed for Chapter 11 last week in an attempt to reorganize.

Four affiliates, Casual Male Inc., PCM Apparel Inc., Himalaya Sportswear Inc. and Sweats FX, also filed Chapter 11 petitions.

In addition to Casual Male, the firm runs 208 Big & Tall stores and 33 off-price Young Men's sportswear stores.

The firm attributed its cash shortage to a troubled men's retail market, price competition from discount retailers, competition in the big & tall market and costs of a store-expansion program.

The company had combined liabilities of about $38 million, including $24.7 million in unsecured claims as of Jan. 27. Assets for the firm were reported at about $48 million.

The company expected to show a $1.5 million loss for the fourth quarter and a $6 million loss for the year.

J. Robert Seder, counsel for Casual Male, said that the firm had formulated a number of business plans that it intends to present to its creditor's committee with announcements to be made in the next two to three months.

Seder said it was too early in the process for any determination to be made on the continuing operation of the stores.

PHOTO : Casual Male's 208 Big & Tall stores and its 33 off-price Young Men's sportwear units

PHOTO : plunged into Chapter 11 with their parent.