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How To Avoid Free Fall After A Retail Merger

March 23, 2016

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Despite attempts to muster a turnaround effort with the launch of the Tailored Brands holding company, recently combined retailers Men’s Wearhouse and Jos. A. Bank are continuing to experience financial free fall.

Although optimism remained high when the dress apparel companies completed their merger in 2014, the results over the subsequent 18 months have done anything but match the initial hype. In fact, net losses for Q4 2015 skyrocketed to $1.05 billion — dwarfing the $35.9 million loss in Q4 2014 — and illustrated that the combined company is bleeding money, and it’s bleeding out fast. Contributing to the massive losses are $1.15 billion worth of non-cash goodwill and intangible asset impairment charges related to the Jos. A. Bank acquisition.

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