Men’s Wearhouse is starting to leverage its synergies with new subsidiary Jos. A. Bank Clothiers Inc.
The company said it has ended the agreement Jos. A. Bank had with Jim’s Formal Wear to supply tuxedo inventory for its rental business, effective Dec. 31, 2014. Men’s Wearhouse will take a one-time charge of $4.5 million in the third quarter for early termination of the agreement.
Doug Ewert, president and chief executive officer of Men’s Wearhouse, said that starting Jan. 1, 2015, the company will leverage its own internal tuxedo rental inventory and logistics to serve the Jos. A. Bank operation.