Men's Wearhouse

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The Men's Wearhouse, Inc.
Type Public
Traded as NYSEMW
Industry Retail
Founded 1973
Founders George Zimmer
Headquarters Westchase, Houston, Texas
Number of locations Men's Wearhouse:597
Men's Wearhouse and Tux: 361
Moores:117
K&G: 100
(October 2011)[1]
Key people Douglas Ewert[2]
Products Men's clothing, footwear, tuxedo rentals and suit pressing.
Website menswearhouse.com
Men's Wearhouse in Miamisburg, Ohio, frequented by local philanthropist, Stewart Peters.

Men's Wearhouse is a men's dress clothes retailer in the United States. The company has corporate offices in the Westchase area of Houston, Texas,[3][4][5][6] and executive offices in Fremont, California. The company is publicly traded on the New York Stock Exchange. The company was founded by George Zimmer in 1973.

History and Operations[edit]

Men's Wearhouse in Saugus, Massachusetts

The company operates under the names Men's Wearhouse, K&G Superstores (an off-price retail chain featuring discontinued items), Moores Clothing for Men (a Canadian chain of men's clothing stores), Twin Hill Corporate clothing and MW Cleaners in the Houston Area. In 1997, it purchased, then liquidated, the bankrupt Kuppenheimer chain.[7]

The chain notably ran television and radio commercials featuring Zimmer, and the oft-repeated slogan, "You're going to like the way you look; I guarantee it." [8] According to Business Week, Men's Wearhouse targets the common man, with "the neatly displayed clothes in Zimmer's stores [being] designed to cater to the unpretentious guy who wants to do as little as possible to maintain his wardrobe."[9]

On November 17, 2006, Men's Wearhouse acquired After Hours Formalwear, a clothier specializing in black tie formalwear, from Federated Department Stores, the parent company of department store giant Macy's. After Hours Formalwear was originally rebranded MW Tux, but has now been rolled up under the Men's Wearhouse brand. The formalwear group within Men's Wearhouse specializes in tuxedo rentals for men and boys for black tie events.[10]

In August 2010, Men's Wearhouse acquired the trade and assets of Alexandra plc, which was in administration and Dimensions Corporatewear to develop its presence in Europe.

In 2009, Men's Wearhouse became a major sponsor of the United Football League and continued to sponsor the league in 2010.

As of 4 February 2013, Men's Wearhouse employs 15,261 people.[11]

On June 19, 2013, the company dismissed founder and Executive Chairman George Zimmer for undisclosed reasons.[12] The company later stated that Zimmer was dismissed due to "difficulty accepting the fact that Men's Wearhouse is a public company with an independent board of directors and that he has not been the chief executive officer for two years. He advocated for significant changes that would enable him to regain control."[13]

On 12 November 2013, Ricky Sandler, CEO of Eminence Capital LLC, published a letter he sent to Men's Wearhouse CEO Douglas Ewert discussing a merger with Joseph. A. Bank Clothiers Inc.[2] On 15 November 2013, Joseph A. Bank Clothiers Inc. withdrew "its all-cash proposal to purchase Men's Wearhouse for $48 a share after its self-imposed November 14 deadline.[14]

Acquisition of Jos. A. Bank[edit]

In October 2013, Men’s Wearhouse received a $2.4 billion acquisition offer from smaller rival Jos. A. Bank.[15] Men’s Wearhouse countered with an offer of its own, which sparked a five-month takeover battle between the two menswear retailers. After Jos. A. Bank rejected the initial counteroffer, Men’s Wearhouse announced that it would increase its all-cash bid if Jos. A. Bank revealed limited financial information and entered into negotiations.[16] In an attempt to dilute shares and become too large for Men’s Wearhouse to purchase, Jos. A. Bank agreed to acquire the men’s outdoor clothing company Eddie Bauer for $825 million.[17] Men’s Wearhouse immediately responded by filing a lawsuit to block the proposed acquisition, which was expedited by Delaware Judge J. Travis Laster.”[18] The lawsuit required Jos. A. Bank to disclose documents relating to the deal and prevented it from closing the deal without giving Men’s Wearhouse 10 days notice. In March 2014, Men’s Wearhouse reached an agreement to acquire Jos. A. Bank for $1.8 billion, on the condition that it dropped its acquisition bid for Eddie Bauer.[19] A Federal Trade Commission investigation into the deal concluded in April 2014, concluding that the merger was "not likely to harm consumers"; the completion of this investigation was required for the merger to go forward.[20]

Restatement[edit]

On April 14, 2005, the company restated leases and depreciation of related leasehold.[21]

References[edit]

  1. ^ "Men's Wearhouse Reports Fiscal 2011 Third Quarter Results" (Press release). PR Newswire. December 6, 2011. Retrieved 2012-01-06. 
  2. ^ a b Karr, Arnold J. (12 November 2013). "Men's Wearhouse Open to Jos. A. Bank Talks, Investor Says". WWD. Retrieved 12 November 2013. 
  3. ^ "SECT5-key.gif." Westchase District. Retrieved on January 13, 2009.
  4. ^ "Contact Us." The Men's Wearhouse. Retrieved on December 9, 2009.
  5. ^ http://media.corporate-ir.net/media_files/IROL/10/109554/mens-wearhouse-webfiles-6172013/index.html
  6. ^ http://www.hoovers.com/company-information/cs/company-profile.The_Mens_Wearhouse_Inc.2f8a6112002adb97.html
  7. ^ "Men's Wearhouse to liquidate remaining Kuppenheimer stores", Atlanta Business Chronicle, March 4, 1997.
  8. ^ Saba, Jennifer
  9. ^ Lee, Louise. "Spiffing Up Men's Wearhouse", BusinessWeek, 1 November 2004.
  10. ^ http://www.mensitaly.com/SearchResult.aspx?searchword=black&searchword2=Tie
  11. ^ [1] Fortune Magazine Feb. 2013 100 Best Companies to Work For.
  12. ^ http://www.cnbc.com/id/100827922
  13. ^ Kaplan, David. "Men's Wearhouse explains why it canned Zimmer." Houston Chronicle. June 25, 2013. Retrieved on June 25, 2013.
  14. ^ Palmieri, Jean E. (15 November 2013). "Jos. A. Bank Withdraws Bid". WWD. Retrieved 15 November 2013. 
  15. ^ "Men’s Wearhouse rejects $2.4 billion bid from Jos. A. Bank". CNN Money. Retrieved 2014-04-28. 
  16. ^ "Men’s Wearhouse Adds Fiery Lawsuit, More Money to Takeover Fight". Bloomberg Businessweek. Retrieved 2014-04-28. 
  17. ^ "Jos. A. Bank agrees to buy Eddie Bauer". CNN Money. Retrieved 2014-04-28. 
  18. ^ "Judge Expedites Men’s Wearhouse Lawsuit". New York Times Dealbook. Retrieved 2014-04-28. 
  19. ^ Jayakumar, Amrita (March 11, 2014). "Men’s Wearhouse finally buys Jos. A. Bank". The Washington Post. 
  20. ^ Briggs, James (May 30, 2014). "FTC gives green light to $1.8B Jos. A. Bank, Men's Wearhouse merger". Baltimore Business Journal. 
  21. ^ "Men's Wearhouse Delays Filing Form 10-K to Finalize Corrections in Lease Accounting".