Founder of the chain Men’s Wearhouse George Zimmer is famous for his gravelly delivery of the brand’s tagline (“You’re going to like the way you look. I guarantee it.”), but his visual and vocal link to the business he founded was not enough to keep his own board from “terminating” him this morning.
For Men’s Warehouse , Zimmer was a constant and a large part of the brand’s image. And in interviews, he came across as a stand-up guy, with positions rooted in personal integrity and critical thinking.
And at Men’s Wearhouse, Zimmer’s presence was felt throughout the ranks — the chain has been voted one of America’s best places to work , and the man himself has been uncharacteristically egalitarian about employee treatment.
In a 2007 interview, Zimmer (himself a recovering alcoholic) told CNN Money :
“I don’t trust the U.S. justice system to get [background checks] right … I’d rather make my own decisions, and I believe in giving people a second chance.”
Still, Zimmer’s Men’s Wearhouse firing came as a shock despite a drawdown of his role at the company he founded, and Richard Jaffe, analyst with Stifel Nicolaus, was quoted by ABC as surmising:
“We believe that despite Zimmer’s planned transition to a smaller role at the company, he had difficulty letting go of the reins and the leadership of the business … We believe that this led to a conflict with the board and his subsequent termination.”
Jaffe continued:
“We believe current management has been running the business effectively and will continue to do so. While we believe near term uncertainty exists as Men’s Wearhouse responds to a difficult macro-economic environment, we remain positive on the long term viability of the company, and at the current stock price, the risk/reward is attractive.”
With the shock firing of Men’s Wearhouse’s Zimmer and odd timing (ahead of a planned meeting), even analysts are scratching their heads, observing that it is “rare to fire a founder … founders are generally entrenched in the company.”
