We no longer like the way you look: Men's Wearhouse fires Zimmer

[The_Dude]

Men's Wearhouse ousts founder Zimmer

Men's Wearhouse ousts founder Zimmer
Reuters – 2 hrs 10 mins ago
(Reuters) - Apparel retailer Men's Wearhouse ousted Executive Chairman George Zimmer, the face of the company founded 40 years ago, sending its shares down as much as 6 percent.
The company, which gave no reason for the dismissal, also postponed its annual shareholder meeting scheduled for later on Wednesday in order to renominate existing directors without Zimmer.
"The board expects to discuss with Mr. Zimmer the extent, if any, and terms of his ongoing relationship with the company," Men's Wearhouse said in a terse statement.
Company spokesman Ken Dennard said he had no comment beyond what was in the statement.
Efforts to reach Zimmer were unsuccessful. A query posted on the "Ask George" section of the company's website, did not elicit an immediate response.
Zimmer, 64, has appeared in his own commercials since 1985 and is known for his line: "You're going to like the way you look. I guarantee it."
The retailer said in its annual report in March that Zimmer was central to its public image and advertising.
" ... The extended loss of the services of Mr. Zimmer or other key personnel could have a material adverse effect on the securities markets' view of our prospects and materially harm our business."
However, Stifel Nicolaus analyst Richard Jaffe said Zimmer's departure would probably not have a big impact on the company as it has the legal right to his image and 500 hours of footage.
"We believe he has been easing himself out of day to day work over the last year," Jaffe wrote in a note. He speculated that Zimmer may have had difficulty letting go of leadership of the business, and that this had led to conflict with the board.
Men's Wearhouse, founded in 1973, operates more than 1,100 stores under the Men's Wearhouse, Moores and K&G banners.
It reported higher-than-expected results in its most recent quarter, with sales jumping more than 5 percent to $616.5 million. The company had sales of $2.38 billion in 2012.
"I founded this company 40 years ago on the belief that employees should enjoy coming to work every day," Zimmer said in a January 17 statement after Fortune magazine included the company on its list of "100 best companies to work for."
Zimmer was the company's single-largest individual shareholder as of March 31 with a stake of 3.52 percent, according to Thomson Reuters data.
The bearded, raspy-voiced Zimmer was president from 1974 to 1997 and chief executive from 1991 until June 2011 when he became executive chairman.
A well-known proponent of legalizing marijuana, Zimmer was also an independent director at for-profit education provider Apollo Group Inc from 2006 until March 21 this year.
Shares of the company, based in Fremont, California, were down about 2 percent at $36.77 in late morning trading on the New York Stock Exchange.
(Reporting by Siddharth Cavale and Aditi Shrivastava in Bangalore; Editing by Roshni Menon)

[onedef92]

Headline du jour right there, Dude. I heartfelt that joker from all the way over here!

[Grey Ghost]

Originally Posted by onedef92

Headline du jour right there, Dude. I heartfelt that joker from all the way over here!

[Yerf Dog]

Seems odd they would oust him.

[onedef92]

Originally Posted by Yerf Dog

Seems odd they would oust him.

Did he get too fat for the suits and shit?

[StaticCling]

Originally Posted by TxAg

They fired Zimmer? Man.

I guarantee it.

[C5Nate]

Originally Posted by Yerf Dog

Seems odd they would oust him.

It reported higher-than-expected results in its most recent quarter, with sales jumping more than 5 percent to $616.5 million. The company had sales of $2.38 billion in 2012.

I dont like the way this looks.

[Burnt C6]

I met George here in Houston back in the 80's at one of his stores. He was a great guy who really cared. If I had started a company and it got big there would be certain things written in my contract that could not happen. Firing me would be at the top of the damn list. I don’t give a shit if it has gone public or not. The azz hat board of directors wouldn’t have their jobs if it weren’t for me. Now they could ask me to quit for 500,000,000,000 and I might do that.

[MrPeabody]

FWIW, I knew a guy a few years ago who managed one of their stores. He said Zimmer was a raging asshole, a liar and a crook.