Men's Warehouse Board Kicks Founder and Brand Image George Zimmer to the Curb (MW)
In a surprising turn of events Wednesday morning, Men's Warehouse (NYSE: MW), a specialty men's retailer, announced that its board of directors had terminated founder George Zimmer's executive chairman position.
Many are familiar with Zimmer's gravely voice and white beard from the Men's Wearhouse commercials. He is especially known for the slogan he delivers at the end of each commercial: “You're going to like the way you look. I guarantee it."
The board's move to terminate Zimmer's position seems drastic, as removing a founder is often frowned upon by shareholders, especially one who is the face of the brand.
Later in the release, the company announced that it was postponing its annual shareholders meeting, which was originally scheduled for June 19.
Following the news, Men's Warehouse shares took a beating, falling almost nine percent to $34.14 before recovering slightly.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.