George Zimmer, founder and ousted chairman of The Men’s Wearhouse, Inc. (NYSE:MW) submitted his resignation from the board of directors of the company on Monday, according to a report from The Wall Street Journal.
In a letter released last week, Zimmer indicated that it is “clear” that he was fired by the board of directors of The Men’s Wearhouse, Inc. (NYSE:MW) in an effort to “avoid addressing” his growing concerns regarding their recent decisions and the strategic direction of the company.
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The board of directors of The Men’s Wearhouse, Inc. (NYSE:MW) announced the termination of Zimmer as chairman during its scheduled annual shareholders meeting on Wednesday. The company stated that it would discuss the extent of any relationship he would want to have with the company in the future.
Men’s Wearhouse Offers No Explanation
The Men’s Wearhouse, Inc. (NYSE:MW) did not provide any explanation regarding the sudden termination of Zimmer. The retailer of men’s specialty apparel also postponed its annual shareholders’ meeting, and will re-nominate its existing slate of directors without Zimmer, but did not specify the new schedule.
Zimmer issued a statement in response to his termination last week. According to him, he built The Men’s Wearhouse, Inc. (NYSE:MW) together with its amazing employees and loyal customers who value its products and services, into a multi-billion dollar company. He emphasized that he raised his concerns to the board of directors of the company regarding the direction it’s been heading over the past several months. Instead of discussing the issues with him, he said, “The board inappropriately chose to silence my concerns by terminating me as an executive officer.” Zimmer did not provide further details regarding his concerns.
George Zimmer Ads May Continue With 500 Hours of Existing Footage
It is still unclear whether Zimmer will continue his role in advertising for the company. He had been the face of the The Men’s Wearhouse, Inc. (NYSE:MW) in many of its television commercials for decades, with the tagline, “You’re going to like the way you look, I guarantee it.”
In November 2010, the company signed a license agreement that it would pay Zimmer or his estate $250,000 per year for four consecutive years whether the company uses him in advertisements or not. Analysts at Stifel Nicolaus noted that the company has 500 hours of advertising footage of Zimmer.
He owns a 3.6 percent stake in The Men’s Wearhouse, Inc. (NYSE:MW), and is the seventh largest shareholder of the company.