Jos. A. Bank has failed to acquire Men’s Wearhouse after the company rejected a $2.3 billion deal. If successful the companies would have combine for nearly 2,000 stores based around the suit and tuxedo markets.
Last summer the Board of Directors at Men’s Wearhouse fired founder and Chairman George Zimmer. Jos. A. Bank tried to capitalize on the company’s restructuring but the organizations leaders called the offer opportunistic and inadequate.
Jos. A. Bank Clothiers on Wednesday disclosed its unsolicited offer which it made in September. The offer, valued at $48 per share, placed a 42 percent premium on the company’s stock at the time of the offer.
Men’s Wearhouse officers rejected the deal on the grounds that it was not in the best interest of shareholders.
In trading on Wednesday Men’s Wearhouse Inc. shares climbed by 28 percent to $45.03. The company’s shares are now at their highest point since February 2007.
Jos. A. Bank is a big player in the men’s tailored and casual clothing line. The company also offers sportswear and footwear while operating 623 stores in 44 states and the District of Columbia. The company also sells its wears through its Moores and K&G retail chains. The company operates more than 1,200 stores.
It’s not known at this time if the company will make another play at Men’s Wearhouse. Since the offer was unsolicited there is a good chance this is not the last we will hear from the clothier.
Do you think Jos. A. Bank Clothiers would do a better job running Men’s Wearhouse and its suit selling enterprise?