Men's apparel holding company Tailored Brands (TLRD  ) has filed for bankruptcy amid mounting debt and a drop in demand for formal attire amid the coronavirus pandemic. The company's struggles predate the pandemic, but the sudden onset of coronavirus shutdowns proved to be too much for the company.

The first signs of trouble came in July when Tailored Brands announced the looming closure of 500 stores and a reduction in corporate staff. Tailored Brands filed for bankruptcy weeks later on August 2 amid dramatically reduced demand and a sharp increase in liabilities over the last quarter.

"The unprecedented impact of COVID-19 requires us to further adapt and evolve," says Tailored Brands CEO Dinesh Lathi. "Reaching an agreement with our lenders represents a critical milestone toward our goal of becoming a stronger company that has the financial and operational flexibility to compete and win in the rapidly evolving retail environment."

Many retailers are seeing decreasing sales, both before the pandemic, and as a result, mainly as a result of the explosive popularity and ease of use of online storefronts, such as the ever-ubiquitous Amazon (AMZN  ) or even other retailers such as Walmart (WMT  ) that are better at adapting to changes in consumer preferences. While many retailers are expanding online storefronts to some success, it doesn't appear that any such move could help Tailored Brands simply because the demand for its products is declining rapidly.

The increase in teleconferencing as offices close amid the pandemic has decreased an already declining demand for professional wear; with many companies considering longer-term or permanent teleconferencing measures, it's unlikely that the market for professional wear will recover anytime soon.

The company was facing declining demand even before the pandemic, however, due to the increasing casualization of office dress codes. Many companies in younger sectors, particularly those originating from Silicon Valley, tend to allow for more casual office dress than previously allowed in most other sectors. Companies such as Facebook (FB  ) and Alphabet (GOOGL  ) forgo formal dress codes in favor of "business casual." The trend has caught on even in the traditionally formal financial sector, with JP Morgan (JPM  ) loosening its dress code somewhat.

The decline has been ongoing for years, which has, in turn, led to reduced foot traffic at many Men's Wearhouse and Jos. A. Bank locations, which relied heavily on office professionals for sales. The pandemic has served to accelerate what appeared to be a steady decline. Overall, many experts don't seem to be particularly hopeful for a rebound, with one firm predicting a 24% decline in the sales of men's suits in 2020 alone.

"Many tailoring-focused brands started promoting 'business-on-top' looks as video calls became the norm, featuring dress shirts paired with relaxed trousers and smart joggers. While this did help push sales for smarter shirting, retailers shifted focus to polo shirts (which is) the new smart-casual alternative." Said Tara Drury, a retail analyst at Edited.

Tailored Brands does, however, have plans to introduce more casual clothing lines into its stores, which could help prop up the company and potentially help it recover lost sales. The ongoing pandemic and the company's financial problems, however, serve as obvious obstacles to any semblance of recovery.