May 3 Department store operator Macy's Inc
and Tailored Brands Inc have agreed to wind down
operations of a tuxedo rental license agreement, the companies
said on Wednesday.
Reservations at The Tuxedo Shops at Macy's will continue
until June 1 and the operations will wind down by July 14, the
The initiative did not generate the revenue that both
companies had envisioned, Tailored Brands Chief Executive
Officer Doug Ewert said in a statement.
The agreement was signed between Macy's and Men's Wearhouse
on June 9, 2015.
Men's Wearhouse said last year it would become Tailored
Brands, a holding company that also includes brands such as Jos.
A. Bank and K&G.
Tailored Brands, which had flagged concerns with the
performance of the Macy's tuxedo business in its fourth-quarter
earnings, said on Wednesday that it would record one-time
charges of about $17 million related to the winding down, of
which $2.5 million would be non-cash costs.
The company had recorded an asset impairment charge of $14
million in the fourth quarter related to fixed assets in the
(Reporting by Karina Dsouza in Bengaluru; Editing by Sriraj