George Zimmer is building his empire.Generation Tux, the online tuxedo rental business founded in 2014 by the gravelly voiced founder of Men’s Wearhouse has acquired a competing business called Menguin in a stock exchange deal worth $25 million.As part of the deal, Menguin has relocated to Louisville, Ky., the headquarters of Generation Tux, and its chief executive officer, Justin Delaney, will become president of both brands, which will continue to be run as separate businesses. His cofounder Bogdan Constantin will serve as chief marketing officer.“I met these guys about a year ago and they had a small company that was doing about the same volume we do,” Zimmer said. “But the difference was that we invested many millions more than they did. They built their business on old-fashioned hard work and knowledge.”[caption id="attachment_10400511" align="aligncenter" width="200"] George Zimmer[/caption]The four-year-old Menguin has been experiencing a compound annual growth rate of 800 percent. Generation Tux expects to have sales next year of between $20 million and $30 million.He said the number of rentals and revenue of the two companies was similar, but the expense structure at Generation Tux is much higher. One marked difference is that Menguin did not own its rental inventory while Generation Tux does. Now that the two brands have merged, they will both draw from that same inventory, Zimmer said, which will elevate the merchandise selection at Menguin.“As I came to know them, I realized that it was not just that the economics made sense, but also the integrity of these guys and their competence," Zimmer said of the Menguin founders.He said that by adding Delaney and Constantin to the Generation Tux Inc. holding company, they will “overlay their skills with ours at Generation Tux. It’s a perfect match.”Delaney said, “When George first approached us about marrying the entrepreneurial spirit and marketing technology of Menguin with the back-end technology, brand legacy and mens’ wear expertise inherent in the Generation Tux name, we immediately embraced his vision for the union. Together we are well-positioned to become the singular dominant player in the online formal men’s wear rental category.”Zimmer admitted that while he employed “tech people,” he personally was “probably not as savvy about technology as I should have been running a tech business.” But now with Delaney and Constantin on board, he’s expecting a big boost in business. “There’s a big difference between having equity partners who give a damn and well-paid employees who only care about themselves,” he said.The deal officially closed right after Labor Day and since that time, Zimmer said, there’s been a definite uptick in sales. “It’s working better than I imagined,” he said. “We’re doing a lot more business and gaining a lot more users. I’m very pleased.”Zimmer said that the tuxedo rental business in the U.S. has around $1.5 billion in annual sales, including furnishings and accessories. “But I’d be surprised if the online piece is $100 million,” he said. “Up until now, the product and service haven’t been great, but we’ve hit upon a formula that is beginning to work.”The largest competition for online rental tuxedos is the Black Tux, which earlier this year created an exclusive partnership with Nordstrom to open showrooms in select doors of the department store retailer.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews