NEW YORK--(BUSINESS WIRE)--Wolf Haldenstein Adler Freeman & Herz LLP announces that it is investigating Tailored Brands, Inc. (NYSE:TLRD) (“the Company”), formerly known as The Men’s Wearhouse, Inc., for potential violations of federal securities laws.
Tailored Brands, Inc. is the holding company for The Men’s Wearhouse, Inc. The Company operates as a specialty apparel retailer in the United States, Puerto Rico, and Canada.
Shareholders who incurred losses on securities of Tailored Brands, Inc. are urged to contact the firm immediately at email@example.com or (800) 575-0735 or (212) 545-4774.
On June 18, 2014, the Company announced the completion of its acquisition of Jos. A. Bank Clothiers, Inc. for $65.00 per share in cash. Doug Ewert, President and Chief Executed Office of Tailored Brands (at the time known by its former name, The Men’s Wearhouse, Inc.), touted the synergies and benefits of the acquisition and called the combined entity “a truly great company for all of our stakeholders.” On that day, shares of the Company closed at $55.86 per share.
After the close of trading on November 5, 2015, the Company provided investors with preliminary third quarter results and an updated fiscal year 2015 outlook. Investors were told that “were significant comparable sales weakness at Jos. A. Bank. During the third quarter comparable sales decreased 14.6% at Jos. A. Bank, far below the Company's earlier expectations. This decrease was primarily driven by a decline in traffic as the Company began the transition away from the Buy-One-Get-Three promotional events.“
In addition, fourth quarter comparable sales at Jos. A. Bank were expected to be down between 20 – 25% from the prior year’s fourth quarter, which is the busy holiday selling season. As a result of this shocking disclosure, shares of Tailored Brands, Inc. (known as The Men’s Wearhouse, Inc. at the time), collapsed, closing at $22.70, down $19.40, on extremely high volume. This 48% decline represented a market capitalization decline of $938 billion!
On December 9, 2015, after the close, the Company released third quarter earnings that were even worse than previously expected just weeks earlier. Additionally, same-store sales at Jos. A. Bank in the fourth quarter were actually tracking to be down over 35%! On this news, shares closed at $15.27, down an additional $3.30 per share.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein Adler Freeman & Herz LLP by telephone at (800) 575-0735, via e-mail at firstname.lastname@example.org, or visit our website at www.whafh.com. All e-mail correspondence should make reference to the “Tailored Brands Investigation.”
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