The Men's Wearhouse terminated early an agreement between its subsidiary, Jos. A. Bank and Jim's Formal Wear.
Men's Wearhouse said it will record a one-time charge of $4.5 million in third fiscal quarter 2014, in connection with early termination of this contract, which becomes effective from December 31, 2014.
Jim's Formal Wear had a contract to supply tuxedo rental inventory to Jos. A. Bank.
“However, beginning January 1, 2015, Men’s Wearhouse will be leveraging its own internal tuxedo rental inventory and logistics to serve the Jos. A. Bank tuxedo operations”, Men's Wearhouse CEO - Doug Ewert said.
Founded in 1973, Men's Wearhouse is one of North America's largest specialty retailers of men's apparel with 1,766 stores. (AR)