Men’s Wearhouse to end contract with Jim’s Formal Wear for tuxedos

Men’s Wearhouse has announced an early termination of the contract with Jim’s Formal Wear, a tuxedo supplier to its newly acquired men’s apparel and footwear business Jos A Bank Clothiers effective December 31, 2014. The menswear chain will take a one-time charge of $4.5 million in its fiscal third quarter as a result. Doug Ewert, Men’s Wearhouse president and chief executive officer, commented, “As of January 1, 2015 we will be leveraging our internal tuxedo rental inventory and logistics to serve the Jos. A. Bank tuxedo operations.” The merger with Bank is expected to result in US $ 100 million to US $ 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.