It was another eventful week in the ongoing saga of retail bankruptcies. Tailored Brands, parent of Jos. A. Bank and Men’s Wearhouse, plans to put a greater emphasis on casual apparel as part of its Chapter 11 filing, while the investment group REV is planning to snatch up assets from both Pier 1 and Modell’s out of bankruptcy court.
Men’s Wearhouse and Jos. A. Bank announced that the merchants have entered into a definitive agreement in which Men’s Wearhouse will acquire all of the outstanding shares of common stock of Jos. A. Bank for $1.8 billion. Together, Men’s Wearhouse and Jos. A. Bank will have more than 1,700 stores in the U.S., with approximately 23,000 employees and sales of $3.5 billion on a pro forma basis.
Men’s Wearhouse has confirmed that it entered into a non-disclosure agreement with Jos. A. Bank and agreed to exchange certain confidential information and to work in good faith to evaluate a potential combination. It was also announced that Men’s Wearhouse has received a draft merger agreement from Jos. A. Bank.
Jerry Seinfeld is fascinated by the ongoing acquisition battle between Men’s Wearhouse and Jos. A. Bank. Seinfeld laughed about it during an appearance on BuzzFeed Brews with CBS This Morning.
Men’s Wearhouse believes its $57.50 per share proposal to acquire Jos. A. Bank is compelling, and provides substantial value and immediate liquidity to Jos. A. Bank shareholders.
The Men’s Wearhouse’s Board of Directors voted Oct. 9 to reject an unsolicited, non-binding proposal from Jos. A. Bank to acquire Men’s Wearhouse for $48 per share in cash.