Men’s Wearhouse Rejects Jos. A. Bank Bid

Men’s Wearhouse Inc. (Houston) has rejected the $2.3 billion offer made yesterday by Jos. A. Bank Clothiers Inc. (Hampstead, Md.).

The Men’s Wearhouse board and management said the bid undervalued the company, was not in the best interests of shareholders, was “highly opportunistic” and would likely draw antitrust scrutiny.

“The board and management team are confident that continuing our strategic plan will create more value for shareholders than Jos. A. Bank’s inadequate, highly conditional proposal,” said Men’s Wearhouse ceo Douglas Ewert in a statement, according to The Wall Street Journal.

Men’s Wearhouse said it has reported 13 consecutive quarters of same-store sales growth in its core stores, while Jos. A. Bank has posted three straight quarters of declining revenue.

It argued that Jos. A. Bank was trying to seize upon what it described as a short-term drop in its stock price, driven by an unusually difficult second quarter that affected other retailers as well.