Macy's And Men's Wearhouse Parent Tailored Brands To End Tuxedo Rental Partnership

By Tonya GarciaMarketsMarketWatch Pulse

Macy's Inc. and Tailored Brands Inc. announced Wednesday that they are winding down their tuxedo rental license agreement, established with Men's Wearhouse on June 9, 2015. The Tuxedo Shops will take new reservations until June 1, 2017, with operations ending by July 14, 2017. All customers with rentals after this period will be offered the option to transfer the reservation to a nearby Men's Wearhouse or Jos. A Bank. In March, Tailored Brands reported a $14 million charge after expecting startup losses of $10 million. The increase was due to missing the bulk of wedding season, said Tailored Brands Chief Executive Douglas Ewert on the earnings call. Macy's shares are down 0.2% in late-Wednesday trading, and down 26.2% for the past year. Tailored Brands is up 7.1% in after hours trading, but down 26.4% for the last year. The S&P 500 index is up 15.7% for the last 12 months.

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