Ivey Publishing

Product Details

Jos. A. Bank Clothiers, Inc.: The Men’s Wearhouse Bid
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12 pages (7 pages of text)
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Case (Library)
Jos. A. Bank Clothiers, Inc. (Jos. A. Bank), a men’s apparel retail chain, made a bid to acquire its industry rival, the Men’s Wearhouse. The Men’s Wearhouse not only rebuffed the bid but turned around and made a counter bid to acquire Jos. A. Bank. Initially, Jos. A. Bank merely rejected the offer as inadequate but subsequently made an offer to buy Eddie Bauer, a chain selling outdoor apparel, to make itself an unattractive target for the Men’s Wearhouse. Surrounding this takeover drama were a host of other actors, including Beacon Light Capital, a hedge fund that called for significant governance changes at Jos. A. Bank, and a second hedge fund, Eminence Capital, that owned stock in both Jos. A. Bank and the Men’s Wearhouse, and had filed a lawsuit against Jos. A. Bank to push for the deal to go through. The chairman of Jos. A. Bank’s board was faced with a critical decision regarding the acquisition offer from the Men’s Wearhouse and his own company’s offer to buy Eddie Bauer.
Learning Objective:
This case covers several key topics in the broad area of corporate governance including:
  • The role of a company’s board as agents of stockholders.
  • An examination of various internal measures (e.g., the role of the board and compensation practices) to guard against agency problems.
  • The effectiveness of the market for corporate control as a governance mechanism.
  • An identification and evaluation of the role played by activist investors.
General Management/Strategy,  Finance
Retail Trade
United States, Large, 2014
Intended Audience:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download
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