Men’s Wearhouse Buys Abboud for $97.5 Million
Men’s Wearhouse is buying the Joseph Abboud brand for about $97.5 million in cash in a deal that will broaden the company’s roster of exclusive brands.
The news follows the retailer’s decision to fire its founder George Zimmer as executive chairman last month. Zimmer is well-known for his guarantee in commercials that "You’re going to like the way you look" in Men’s Wearhouse fashions.
Men’s Wearhouse already has a relationship with Joseph Abboud, who created the brand that bears his name in 1987. Abboud has served as chief creative director at Men’s Wearhouse Inc. since December.
The deal is with JA Holding Inc., parent company of the Joseph Abboud brand. Other brands in the transaction include Joseph Abboud Boys, Joseph Abboud Home and Joe Joseph Abboud. It also includes JA’s U.S. tailored clothing factory, which has 450 workers.
Abboud-branded products are sold in department stores and specialty stores in the U.S. and more than 50 countries globally. Men’s Wearhouse, a seller of men’s clothing and accessories, has 1,141 stores.