Connect with us

Hi, what are you looking for?

Jewish Business News

Business

Men’s Wearhouse vs. Banks: Merger Doomed From the Start

3051066-slide-s-1-george-zimmer-launches-online-tux-rental-service-generation-tux

He might not be the spokesman for the brand he created, but Men’s Wearhouse founder George Zimmer still had plenty to say about the proposed merger between MW and competitor Jos. A Banks. “It was ill-fated, ” Zimmer told Bloomberg TV, “I recommended they not make the acquisition.”

Apparently, when MW was done letting Zimmer pitch for them, they were done listening to him altogether. A little less than two years ago, MW was able to acquire JAB for $1.5 billion. Now that move has been criticized ever since same-store sales at the Jos. A. Banks division have been plummeting – down 35 percent, at last check. That news caused share prices to fall off a cliff.

 

3051066-inline-s-3-george-zimmer-launches-online-tux-rental-service-generation-tux

Zimmer, at least, can say he had nothing to do with the deal. After founding MW in 1973, he remained at the head of the table before being shown the door in 2013. In all that time, Jos. A Banks was seen as Men’s Wearhouse’s chief competitor in the affordable men’s business attire market. In all that time he remained against the merger. While neither Zimmer nor MW will say if his refusal to consider the merger played a factor in his dismissal, the plan to acquire JAB began to unfold shortly after he was sacked.

Zimmer told Bloomberg he didn’t like the merger because JAB had put itself in a very bad consumer PR position. “Joe Banks had really damaged their brand over a number of years by running incessant promotions … nobody wanted to pay regular price.”

Zimmer definitely has a point. “Joe Banks” became known in recent years as the place to go when you wanted to buy one suit and get two free. Who would be willing to pay retail when they could simply wait a few months and get three-for-one? Nobody, apparently.

But, whether that knowledge played a part in Zimmer’s firing is uncertain. What is certain, Zimmer butted heads with MW CEO Doug Ewert, a guy Zimmer himself handpicked. Zimmer liked things how they were. Ewert and others on the board wanted to chase after a younger generation. The board could not reconcile their intentions with keeping Zimmer on as the face of the brand. They cut out his promotions, then they sent him packing.

Lot of good it did them. Now there is no “face” of Men’s Wearhouse, and a nation of guys still walking around saying, “You’re gonna like the way you look … I guarantee it.”

This article was first published at Everything-pr, by 

Newsletter



Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.

Advertisement