Jos. A. Bank Clothiers said Friday that its board of directors has approved an amendment to its shareholder rights plan that would lower the ownership threshold of 10 percent from 20 percent of outstanding common shares. According to the company, this move is being made to “level the playing field” with The Men’s Wearhouse, which recently tried and failed to take over Jos. A. Bank Clothiers in a $1.5 billion bid as reported by Reuters. Headquartered in Hampstead, Maryland, Jos. A. Bank Clothiers is a men’s suit retailer.
HAMPSTEAD, Md., Jan 03, 2014 (GLOBE NEWSWIRE via COMTEX) — Jos. A. Bank Clothiers, Inc. (the “Company”) today announced that its Board of Directors has approved an amendment to its shareholder rights plan to, among other things, reduce the ownership threshold to 10 percent from 20 percent of outstanding common shares.
The Company said that in light of the hostile actions The Men’s Wearhouse, Inc. has taken and threatened to take against the Company, which are not in the best interest of the Company’s shareholders, the Board felt it was appropriate to protect the Company’s shareholders by leveling the playing field and ensuring that the Jos. A. Bank Rights Agreement has the same triggering ownership threshold as that of the Men’s Wearhouse Rights Agreement.
On December 23, 2013, the Jos. A Bank Board of Directors unanimously rejected a non-binding acquisition proposal by Men’s Wearhouse based on its determination that the proposal significantly undervalued the Company and its near and long-term potential.
About Jos. A. Bank
Jos. A. Bank Clothiers, Inc., established in 1905, is one of the nation’s leading designers, manufacturers and retailers of men’s classically-styled tailored and casual clothing, sportswear, footwear and accessories. The Company sells its full product line through 629 stores in 44 states and the District of Columbia, a nationwide catalog and an e-commerce website that can be accessed at www.josbank.com . The Company is headquartered in Hampstead, MD, and its common stock is listed on the NASDAQ under the symbol “JOSB.”