Men’s Wearhouse has created a separate division and named a management team for its new workwear operation.
The Houston-based retailer last week acquired Dimensions Clothing Ltd. and certain assets of Alexandra PLC, two leading corporate uniform and workwear companies in the U.K. for 61 million pounds, or about $97.5 million at current exchange, in cash. On Friday, the company unveiled the creation of the Men’s Wearhouse Global Corporate Apparel and Workwear Group and hired Stuart Graham, senior adviser to a European private equity company, as executive chairman. Men’s Wearhouse will control 86 percent of this business while certain shareholders of Dimensions will control 14 percent.
Other executives who will work in the group include Edward Doran, most recently president of the VF Imagewear Coalition, a $1 billion division of VF Corp., who has been named group president of the North America Group. Doran will also oversee TwinHill, Men’s Wearhouse’s existing corporate uniform division. Howard Wecksler will continue as president of TwinHill.
Additionally, Simon Hughes, former chief executive officer of Dimensions Clothing, has been named U.K. Group ceo. Tim Gifford will continue as ceo of Alexandra.
George Zimmer, Men’s Wearhouse founder, chairman and ceo, said: “We have greatly enhanced our corporate apparel and workwear programs with our U.K. acquisitions and the appointment of a group of seasoned executives. We believe this group of executives can execute our long-term strategic vision.”
Zimmer said Graham “will focus on growth initiatives and international strategy,” while Doran will be responsible for enhancing and growing the “business strategy and operations” of the North American unit. He added that the company views the corporate and workwear markets are “an exciting growth opportunity for Men’s Wearhouse.”
Men’s Wearhouse reported last week that the acquisition of these U.K. firms is expected to be accretive to earnings in fiscal 2010 and that projected annual sales for the business are expected to be about 130 million pounds, or around $207.8 million, in fiscal 2011. The businesses dwarf the volume of Twin Hill, which had sales of $13.5 million in fiscal 2009.