The Men's Wearhouse plans to end the contract that supplies tuxedo rental inventory to Hampstead-based subsidiary Jos. A. Bank, the Houston-based men's retailer said Wednesday.
Men's Wearhouse, which acquired Bank in June for $1.8 billion, said an early termination agreement between Bank and Illinois-based tuxedo wholesaler Jim's Formal Wear will take effect Dec. 31. The menswear chain will take a one-time charge of $4.5 million in its fiscal third quarter as a result.
"As of January 1, 2015 we will be leveraging our internal tuxedo rental inventory and logistics to serve the Jos. A. Bank tuxedo operations," Men's Wearhouse president and CEO Doug Ewert said in the announcement.
The merger with Bank is expected to result in $100 million to $150 million of "synergies" by the end of the 2016 fiscal year, Men's Wearhouse had said. The deal likely will mean job losses in Maryland, where Bank is Carroll County's fourth largest employer.Copyright © 2014, The Baltimore Sun