Men’s Wearhouse rejects Jos A. Banks’ $2.4 million bid

Men’s Wearhouse, the men’s apparel giant, has rejected its second offer this year to sell the chain. This time, Jos A. Banks, a smaller scale men’s apparel retailer, has offered them $2.4 million. The offer was a $48 a share cash offer, and 36% higher than Tuesday’s closing price. Jos A. Bank said the payment would be made through cash, debt financing and a $250 million equity investment from the private equity firm, Golden Gate Capital.

Men’s Wearhouse received some attention when it fired its founder George Zimmer, who was the largest single shareholder. The company said that Zimmer was pushing for a purchase by private equity. Its shares fell 6% immediately following the lay off, and Zimmer said that the company was ignoring his “growing concerns” about its progress. The company then threw back a harsh response, saying Zimmer was power hungry, and did not have the company’s best interest in mind.

Last month’s sales and earnings report was fairly low, and Jos A. Bank put in their bid a week after it was released. Following the statement that they would be declining the offer, Men’s Wearhouse’s stock fell to a 23% gain.