JoS. A Bank To Acquire Men's Wearhouse? (New Twist Nov 26)

Discussion in 'Classic Menswear' started by jrd617, Oct 9, 2013.

  1. jrd617

    jrd617 Senior member

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    The consolidation of the North American low end mens suit market could be upon us! JoS. A Bank offers a cool $2.3 billion for MW



    http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-349798/
     
    Last edited: Oct 9, 2013
  2. Quadcammer

    Quadcammer Senior member

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    Buy one mens wearhouse, get 6 free?
     
  3. jrd617

    jrd617 Senior member

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  4. CousinDonuts

    CousinDonuts Senior member

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    Doug, this is your old pal Robert. Hey, got a deal for ya. I'd like to buy your company. Since it is Thursday, I can offer 1 JAB share for every 1 MW share. However, just to let you know a little insider info, if you wait to accept until next Tuesday, we'll give you 4 shares for the price of 1.
     
  5. Patek

    Patek Senior member

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    I see the synergies of crappy clothes and mass market audience. Hopefully, this will push BB to up their quality to differentiate themselves.
     
  6. VinnyMac

    VinnyMac Senior member

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    Wow! This is interesting. I want to see where this goes.
     
  7. jrd617

    jrd617 Senior member

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    Looks like MW shot it down
     
  8. Nick V.

    Nick V. Senior member Dubiously Honored

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  9. jrd617

    jrd617 Senior member

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    Lol makes me think this was some kind of a stunt from the getgo
     
  10. VinnyMac

    VinnyMac Senior member

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    Next, JAB will hire the founder of MW as a consultant/spokesman.
     
    Last edited: Oct 10, 2013
  11. Patek

    Patek Senior member

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    You are going to like the way you buy one suit and get 27 free.
     
  12. jrd617

    jrd617 Senior member

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    Jos a Bank is an old company. Been around since at least the 50s. When did they start advertising their crazy sales on TV? 80s? 90s?
     
    Last edited: Oct 10, 2013
  13. McPryon

    McPryon Well-Known Member

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    Think of all the Perfect Fit rewards from that transaction!
     
  14. Godot

    Godot Senior member

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    I can't believe they are turning down $2.3 billion. I'd take that money and be across the border by 5pm.
     
  15. 12345Michael54321

    12345Michael54321 Senior member

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    Jos A Bank dates back to 1905. It's 108 years old.

    In the early 1980s, JAB had all of 11 stores. It was at this time that the Bank family sold the company to Quaker Oats. And a few years later, Quaker Oats sold JAB to some privately owned company whose name escapes me.

    By the early 1990s, JAB was poised on the brink of bankruptcy. Senior executives were fleeing the company. Hundreds of lower level employees had to be let go. It was deeply in debt. In short, things weren't looking good at all.

    So the company called in a crisis management team (The Finley Company). The Finley of The Finley Company - Timothy Finley - put 3 years of his time into saving JAB. To do this, he had the company re-focus in various ways, go more mainstream and less upscale, advertise very aggressively, outsource production, hire a company President (Henry Schwartz) who firmly believed that lower prices, frequent sales, and contemporary styling were the keys to success in the clothing industry, etc.

    In short, Timothy Finley is the man responsible for turning JAB into a pale shadow of what it once was. But if he hadn't done it, JAB would likely have gone out of business back in the '90s. Like so many, many other clothing retailers went out of business.

    So, this takes us to the past 15 years or so. During which time JAB has expanded to over 600 stores (as opposed to 11 stores, back when it was still the JAB we knew and loved). Ignoring a recent slump, total net sales have been consistently strong, shareholders happy, growth steady, the company has developed a national reputation and good name recognition, etc.

    The old JAB couldn't survive. So it changed, and the new JAB has managed to thrive. Considering how many businesses fail to make necessary changes, and wind up going out of business, JAB deserves credit for what it's done.
     

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