Founder Of Men's Wearhouse, George Zimmer, Fired From Company
If you have watched commercials at any point in the last two decades, chances are you know him as Men's Wearhouse guy, the one who guarantees "you're gonna like the way you look." Now, Men's Wearhouse founder George Zimmer is getting the ax, and will no longer be with the company.
The decision came over apparent friction between Zimmer and the company's Board of Directors. Zimmer had given up his title of CEO back in 2011, and has since been with the company in an advisory position, as well as maintaining the company's brand through the use of his image.
"Over the past several months I have expressed my concerns to the Board about the direction the company is currently heading. Instead of fostering the kind of dialogue in the Boardroom that has in part contributed to our success, the Board has inappropriately chosen to silence my concerns through termination as an executive officer."
It is not yet known what specifically caused Zimmer to be released by the company he founded. He was fired on the day that Men's Wearhouse was set to hold its annual shareholder's meeting, which subsequently got rescheduled.
"Over the last 40 years, I have built MW into a multi-billion dollar company with amazing employees and loyal customers who value the products and service they receive at MW," Zimmer told CNBC.
Don't feel too bad for Zimmer, however. He owns 1.8 million shares of the company, and despite its stock price falling by 2 percent after news of his firing, each share is worth $36.67 currently. That works out to roughly $66 million, not to mention whatever money he has lying in the bank.
Still, the news is a crushing blow to a man who built his empire from the ground up. It's also a highly unconventional move, considering what his image means to the company along with the fact that founders are hardly ever released from the company they built. One expert gave his opinion on what may have caused the split.
"Why would the board terminate him?" Stifel Financial Corp. analyst Richard Jaffe told Bloomberg News. "My sense is that he was reluctant to let go, and that would make sense. He's not a mild-mannered and unassuming guy."
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