Ousted Men’s Wearhouse (MW) founder and executive chairman George Zimmer could try to win his company back. Shares of Men’s Wearhouse surged more than 5% in Tuesday morning trading.
Zimmer was fired by apparel retailer’s board of directors last week. Sources told Reuters that Zimmer’s sudden removal came after he opposed higher compensation for senior management and a plan by the company’s CEO to sell its K&G Fashion Superstore chain. The company says that it fired Zimmer after he pushed to have the company go private, which would have burdened it with too much debt.
On Monday, Zimmer resigned from Men’s Wearhouse’s board. He is consulting legal advisers and considering his next move. While no decision is expected soon, industry experts said that Zimmer might launch a takeover bid. Alternately, he could leverage his family’s 4.7% stake in Men’s Wearhouse to wage a proxy fight to gain control of the company.
Consumers have long been familiar with Zimmer as the public face of the apparel chain. He appeared in numerous commercials, promising that customers would “like the way you look” after shopping at his store.
Ironically, Zimmer had handpicked current CEO Doug Ewert for the top spot. Zimmer’s abrupt firing shocked both analysts and long-time shoppers.