Men’s Wearhouse Inc. (Houston) has agreed to buy JA Holdings Inc. – essentially the Joseph Abboud clothing brand — for $97.5 million from funds affiliated with J.W. Childs Associates LP (Boston).
Abboud is the retailer’s chief creative director. So the deal, which is expected to close in the third quarter, would give Men’s Wearhouse an exclusive label at its more than 1100 stores. It also is ceo Doug Ewert’s first major move since the Men’s Wearhouse board removed founder George Zimmer as executive chairman over strategy disagreements in June.
According to Bloomberg News, Men’s Wearhouse plans for exclusive brands to make up 65 to 70 percent of the business long-term, more than the 45 percent they currently represent.
Although Joseph Abboud clothing will be sold exclusively at Men’s Wearhouse under the terms of the agreement, the company said it will honor its short-term wholesale contracts with other retailers. Joseph Abboud clothing is sold in department and specialty stores, including Nordstrom and Bloomingdale’s.