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Men's Wearhouse fires founder/executive chairman George Zimmer

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X

XiaNaphryz

LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
Men's Wearhouse ousts founder, pitchman Zimmer:

NEW YORK (AP) — Apparently, Men's Wearhouse Inc. doesn't like the way its founder looks anymore.

In a terse release issued Wednesday, Men's Wearhouse said it has fired the face of the company and its executive chairman, George Zimmer, who appeared in many of its TV commercials with the slogan "You're going to like the way you look. I guarantee it."

In a statement issued to CNBC, Zimmer said that over the past several months he and the company's board disagreed about the company's direction and that the board "inappropriately has chosen to silence my concerns," by firing him.

Men's Wearhouse gave no reason for the abrupt firing of Zimmer, who built Men's Wearhouse from one small Texas store using a cigar box as a cash register to one of the North America's largest specialty men's clothiers with 1,143 locations.

The AP could not immediately reach Zimmer for comment.

The timing of the announcement was odd —it happened the morning the company's annual shareholder meeting had been set to take place. The company delayed the meeting but didn't give a new date.

The company said the purpose of postponing the annual meeting is to re-nominate the existing board of directors without Zimmer. It said the board expects to discuss with Zimmer the extent, if any, and terms of "his ongoing relationship" with the company.

The news shocked analysts and corporate governance experts, who tried to speculate what happened.

"This is very rare to fire a founder. Founders are generally entrenched in the company," said Eleanor Bloxham, CEO of The Value Alliance, a board advisory firm.

Zimmer, who handed over his CEO title to Douglas Ewert in 2011, was the company's personable, down-to-earth face, his slogan almost a cultural touchstone.

As of early afternoon, the company's website still prominently spotlighted Zimmer, calling him "The Man Behind The Brand" and linking to YouTube videos of "the man in action."

The abrupt departure comes a week after Men's Wearhouse reported that its fiscal first-quarter profit increased 23 percent, helped by stronger profit margins and an earlier prom season.

In 1971, fresh out of college, Zimmer made his first foray into the clothing industry, working in Hong Kong for six months as a salesman for his father's coat manufacturing business, according to the company website.

In 1973, he and his college roommate opened the first Men's Wearhouse store, which sold $10 slacks and $25 polyester sport coats, in Houston. His personal car was a van with the company logo on the side and clothing racks in the back.

The company aired its first TV commercial in the 1970s when commercials for clothing were rare. Zimmer starred in his first commercial in 1986, with the line "I guarantee it."

Men's Wearhouse kept expanding, focusing on large markets where business was sluggish to take advantage of lower real estate costs. It also expanded beyond sports coats and trousers to casual sportswear in the 1980s and then went into the tuxedo rental business in 2000.

Zimmer owned 1.8 million shares of Men's Wearhouse as of the company's May 9 proxy filing, a 3.5 percent stake in the company.

Shares of Men's Wearhouse fell nearly 2 percent, or 65 cents, to $36.82 in early afternoon trading. The stock has traded between $25.97 and $38.59 in the past 52 weeks, and ended Tuesday up about 20 percent since the start of the year.

The company, based in Fremont, Calif., also runs the Moores and K&G retail chains. It also sells uniform and work wear in the U.S. and U.K.
Click to expand...

7WTHl0c.jpg
 
U

UnholySpectacle

Member
I just bought some shirts and ties from there this morning. I kept hearing the employees talking about "the founder" but I had no idea they were talking about their company.
 
C

Conciliator

Banned
I wonder what the disagreement was about. Seems like a cool idea.

Men's Warehouse has very...uh, conservative fits, in my experience. It's been a while since I been in one though.
 
S

Stinkles

Clothed, sober, cooperative
He could literally get a gig doing V/Os for trailers. One of the best gravelly voices in the world.
 
I

ISOM

Member
This is what happens when you secede control of your company to shareholders and people on boards. Those google guys did the right thing by retaining majority control over the company.
 
L

lenovox1

Member
Deified Data said:
Must suck getting fired from the company you founded.
Click to expand...

The company isn't even doing badly from what I can find. There's been some drama over what they want to do with their discount chain, K&G. A few months ago, they basically put it on the market. But that's about it.
 
Grinchy

Grinchy

Banned
He should go work for some other clothing company, like Abercrombie and Fitch.

"You're going to look like a big douchebag. I guarantee it."
 
B

Bombadil

Banned
I’M GEORGE ZIMMER, FOUNDER AND CEO OF THE MEN’S WEARHOUSE. MY SECRETARY, FOLLOWING A BARBARIC BEAVER BEATING THAT SLOUGHED OFF HER UTERINE LINING MORE EFFECTIVELY THAN HER OWN MENSTRUAL CYCLE, INFORMED ME THAT MY TWO LEAST FAVORITE ARTISTS, 311 AND SCOTT STAPP, WERE RECENTLY INVOLVED IN A SCUFFLE. HISTORICALLY A MEDIATOR, I FLEW IN MY LEARJET TO MEET THE TWO BANDS. THE TWO GROUPS WERE WHINING LIKE ANNA NICOLE SMITH AFTER INHERITANCE MONEY UNTIL I PREPPED THE MEMBERS OF 311 FOR THE IMPENDING IMPALEMENT WITH A COMPREHENSIVE COATING OF NUT NECTAR, GLUING THEM TO THE GROUND. AFTER SUSTAINING A BLUNT FORCE TRAUMA TO THE HEAD FROM MY CROTCH CRUSHING CONCUSSION CANE, STAPP WAS TAKEN ‘HIGHER’ THAN EVER BEFORE AS HE WAS BOUNCED LIKE A BABY UPON THE Z-MAN’S TWO-TON TROUSER-SCHNAUZER, WHILE THE 311 MEMBERS WERE HELD CAPTIVE BY THEIR OWN ASSHOLES LIKE BOWLING BALLS. THE FORCE FROM MY CULVERT-SIZED COCK SPLITTING STAPP APART WAS ENOUGH TO CAUSE HIM TO DEVELOP DUAL PERSONALITY DISORDER. AS STAPP PROCEEDED TO BLEED TO DEATH, MY STEADFAST SLUT-SPEARING SON-SIRING SKINFLUTE BURST THROUGH THE LEAD SINGER’S BVD’S, CAUSING HIM TO BREAK OUT INTO A RAPE-INSPIRED RENDITION OF ‘COME ORIGINAL’. I COULD ONLY INTERPRET HIS SINGING TO INDICATE IT WAS TIME TO FINISH UP, SO I BURIED THE ALT-ROCK GREAT IN A GOOEY GRAVE OF GONAD GOULASH. MY GROIN YETI IS NOW THE SIXTH MEMBER OF 311, I GUARANTEE IT.
Chuck Norris Edition
HI, I’M GEORGE ZIMMER, FOUNDER AND CEO OF THE MEN’S WEARHOUSE. I’D BEEN HEARING A LOT LATELY ABOUT THE MERITS OF THIS CHUCK NORRIS FELLOW, SO I THOUGHT I’D PAY HIM A VISIT- ZIMMER STYLE. AS I APPROACHED HIS HOUSE, I HEARD A TWIG SNAP BEHIND ME AND THEN OUT OF NOWHERE CAME THE LEG OF THE ONE AND ONLY CHUCK NORRIS. LUCKILY MY REFLEXES WERE TOO FAST FOR HIM. MY MASSIVE MASCULINE MEAT-PIPE BURST FORTH FROM MY FINELY-TAILORED TROUSERS, ENSNARING HIS LEG WITH THE POWER OF A THOUSAND ANACONDAS. HIS ONCE POWERFUL INSTRUMENT OF DEATH THUSLY DESTROYED, HE WAS COMPLETELY POWERLESS. I DECIDED THAT THAT UGLY MUG OF HIS WAS NOT UP TO ZIMMER STANDARDS, SO I DETERMINED TO DELIVER A MAKEOVER HE WOULDN’T SOON FORGET. HE BEGAN TO CRY LIKE A KITTEN UNDER A STEAMROLLER AS MY PULSATING PELVIC PILEDRIVER DELIVERED BLOW AFTER BLOW TO HIS EVER-SOFTENING SKULL. AS I FINISHED OFF MY FLESH-SCULPTURE, I REALIZED THAT I HAD FORMED HIS HEAD INTO THE SHAPE OF DEVIL’S TOWER. THE SHOCK CAUSED ME TO LET FORTH A FLOOD OF CAUSTIC COD CREME THAT BURNED OFF THAT RIDICULOUS STUBBLE HE CALLS A BEARD. HE’S UNCONCIOUS NOW, BUT HE’LL SOON WAKE UP. HE’S GONNA LIKE THE WAY HE LOOKS. I GUARANTEE IT.


http://knowyourmeme.com/memes/george-zimmer-copypasta
 
T

Tom_Cody

Member
AP said:
Zimmer owned 1.8 million shares of Men's Wearhouse as of the company's May 9 proxy filing, a 3.5 percent stake in the company.
Click to expand...
Hmm.

Can someone with more understanding of finance explain this to me? If he is the founder, what would have lead him to only possessing 3.5% of the company?

Did his ownership stake simply become diluted as the company took on more investors in order to expand so drastically or is it possible that he has divested over the years by simply selling off his stock.

IGSaint said:
This is what happens when you secede control of your company to shareholders and people on boards. Those google guys did the right thing by retaining majority control over the company.
Click to expand...
Well he's only controls 3.5%, nothing even remotely approaching a controlling share.
Tenks said:
Damn owns 1.8M shares of a stock trading at $36. Dude is riiiiiiich.
Click to expand...
If he has simply been selling off stock over the years than he is likely worth much more than that.
 
Maximus.

Maximus.

Member
I liked him in the commercials. I guess he sold stock throughout the years to have more cash on hand, but still sucks to be fired from the company you built.
 
F

Futureman

Member
UnholySpectacle said:
I just bought some shirts and ties from there this morning. I kept hearing the employees talking about "the founder" but I had no idea they were talking about their company.
Click to expand...

Pretty sure Men's Warehouse is almost like a Scientology-like cult. Basically a bunch of sheep without their shephard now. We'll probably be hearing about mass, coordinated suicides form Men's Warehouse employees over the coming days.
 
F

Ferrio

Banned
When questioned later, Zimmer responded "I don't need those guys. I'll start my own Men's Warehouse, with blackjack and hookers!"
 
G

geebee

Banned
Didn't this happen in a movie or tv show? The founder of a company being fired/demoted by much younger guys..
 
M

MiKeD

Banned
It's gonna be weird watching one of their commercials without hearing/seeing him at the end of it.

KmA said:
It seems no one is getting the joke here so I'll just chime in and say 10/10
Click to expand...

Maybe because it was pretty lame and you could see it coming from miles away. An obvious attempt of 'trying too hard to have a funny first reply'.
 
L

Lasthope106

Member
Am I thinking of the right guy? Wasn't this the CEO that said he would give employment to convicted felons because he understood the value of giving 2nd chances and not judging a person's life for one mistake. Also that he donated suits to inmates once they got out of jail. And wasn't he the one that treated his employees well?
 
E

Ermac

Proudly debt free. If you need a couple bucks, just ask.
Lasthope106 said:
Am I thinking of the right guy? Wasn't this the CEO that said he would give employment to convicted felons because he understood the value of giving 2nd chances and not judging a person's life for one mistake. Also that he donated suits to inmates once they got out of jail. And wasn't he the one that treated his employees well?
Click to expand...

Yeah, he was known for his unique style. He hired Deepak Chopra to the board.
 
D

dskillzhtown

keep your strippers out of my American football
IGSaint said:
This is what happens when you secede control of your company to shareholders and people on boards. Those google guys did the right thing by retaining majority control over the company.
Click to expand...

Pretty much. Dude is rich, but it still has to hurt getting fired.
 
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