Tailored Brands

Tailored Brands, Inc. is an American retail holding company for various men's apparel stores, including the Men's Wearhouse and JoS. A. Bank brands.[3] The company is headquartered in Houston, Texas, with additional corporate offices in Fremont, California.[4]

Tailored Brands, Inc.
Public
Traded asNYSE: TLRD
IndustryRetail
Founded1973 (as Men's Wearhouse)
FounderGeorge Zimmer
Headquarters
Houston, Texas
,
U.S.
Number of locations
1,450 (Feb. 2020) [1]
Area served
United States
Canada
Key people
Dinesh S. Lathi (CEO)[2]
ProductsMen's clothing, footwear, tuxedo rentals and suit pressing
Revenue US$ 2.881 billion (2019) [1]
US$ 97.84 million (2019)[1]
US$−82.28 million (2019)[1]
Total assets US$ 2.419 billion (2019)[1]
Total equity US$−98.31 million (2019)[1]
Number of employees
19,300 (Feb. 2020)[1][2]
SubsidiariesJoS. A. Bank Clothiers
Men's Wearhouse
Moores
K&G Fashion Superstore
Websitetailoredbrands.com
josbank.com
menswearhouse.com
mooresclothing.com
kgstores.com
Men's Wearhouse in Miamisburg, Ohio

History and operations

Tailored Brands, Inc. was created in January 2016 when Men's Wearhouse transitioned to a holding company model and changed its ticker symbol from MW to TLRD.[3]

Men's Wearhouse in Saugus, Massachusetts

Founded in 1973, by George Zimmer as a retail men's clothing store, the business had grown to 100 stores when it held an IPO in 1992 raising $13M.[5] Zimmer turned Men's Wearhouse into an industry consolidator, acquiring numerous competitors throughout his tenure leading the firm. Today, as Tailored Brands, the company operates Men's Wearhouse, Men's Wearhouse & Tux, K&G Superstores (an off-price retail chain), Moores Clothing for Men (a Canadian chain of men's clothing stores), Twin Hill Corporate clothing, and Jos A. Bank. In 1997, it purchased, then liquidated, the bankrupt Kuppenheimer chain.[6]

Men's Wearhouse 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."[7] 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."[8]

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 company 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.

In 2009, Men's Wearhouse became a major sponsor of the United Football League and continued to sponsor the league in 2010. In that same year, the company acquired the trade and assets of Alexandra plc, which was in administration and Dimensions Corporatewear to develop its presence in Europe.

In 2013, the company acquired the Joseph Abboud brand to its lineup.[9]

"You're gonna like the way you look. I guarantee it."

On June 19, 2013, the company dismissed founder and Executive Chairman George Zimmer for undisclosed reasons.[10] 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."[11]

Acquisition of Jos. A. Bank

In October 2013, Men's Wearhouse received a $2.4 billion acquisition offer from smaller rival Jos. A. Bank.[12] 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.[13] 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.[14] Men's Wearhouse immediately responded by filing a lawsuit to block the proposed acquisition, which was expedited by Delaware Judge J. Travis Laster.”[15] 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.

On November 12, 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.[16] On November 15, 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".[17]

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.[18] A Federal Trade Commission investigation into the deal concluded in May 2014, concluding that the merger was "not likely to harm consumers"; the completion of this investigation was required for the merger to go forward.[19]

Tailored Brands filed for bankruptcy due to the coronavirus pandemic on August 2, 2020[20], after announcing a few weeks earlier that they would close around 500 locations.[21]

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References
  1. https://www.sec.gov/ix?doc=/Archives/edgar/data/884217/000155837020003700/tlrd-20200201x10k72fd37.htm
  2. "Tailored Brands". Fortune. Retrieved June 15, 2020.
  3. Men's Wearhouse Announces New Holding Company: Tailored Brands, Inc.
  4. "company-information". tailoredbrands.com/company-information. Retrieved June 18, 2019.
  5. The History of Men's Wearhouse
  6. "Men's Wearhouse to liquidate remaining Kuppenheimer stores", Atlanta Business Chronicle, March 4, 1997.
  7. "Zimmer no longer there to". tribunedigital-chicagotribune. Retrieved May 12, 2016.
  8. Lee, Louise. "Spiffing Up Men's Wearhouse", BusinessWeek, November 1, 2004.
  9. Men's Wearhouse to Acquire Iconic American Designer Brand
  11. Kaplan, David. "Men's Wearhouse explains why it canned Zimmer." Houston Chronicle. June 25, 2013. Retrieved on June 25, 2013.
  12. "Men's Wearhouse rejects $2.4 billion bid from Jos. A. Bank". CNN Money. Retrieved April 28, 2014.
  13. "Men's Wearhouse Adds Fiery Lawsuit, More Money to Takeover Fight". Bloomberg Businessweek. Retrieved April 28, 2014.
  14. "Jos. A. Bank agrees to buy Eddie Bauer". CNN Money. February 14, 2014. Retrieved April 28, 2014.
  15. "Judge Expedites Men's Wearhouse Lawsuit". New York Times Dealbook. Retrieved April 28, 2014.
  16. Karr, Arnold J. (November 12, 2013). "Men's Wearhouse Open to Jos. A. Bank Talks, Investor Says". WWD. Retrieved November 12, 2013.
  17. Palmieri, Jean E. (November 17, 2013). "Jos. A. Bank Withdraws Bid for Men's Wearhouse – WWD". WWD. Retrieved May 12, 2016.
  18. Jayakumar, Amrita (March 11, 2014). "Men's Wearhouse finally buys Jos. A. Bank". The Washington Post.
  19. Briggs, James (May 30, 2014). "FTC gives green light to $1.8B Jos. A. Bank, Men's Wearhouse merger". Baltimore Business Journal.
  20. https://www.marketwatch.com/story/mens-wearhouse-jos-a-banks-parent-tailored-brands-files-for-bankruptcy-report-2020-08-02
  21. https://www.cnn.com/2020/07/21/business/tailored-brands-closures/index.html
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