The Men's Warehouse can no longer guarantee their new look after firing the company's founder, George Zimmer, without warning.
A statement released Wednesday confirms that the Men's Warehouse has fired its founder and executive chairman George Zimmer. The announcement came as a shock to analysts, who observed that the company's profits have gone up an estimated 20 percent since the beginning of the year.
Just 40 years ago, The Men's Warehouse was a two-man Houston company that sold slacks at $10 a pair. Sport coats were also an option for $25. Since its small beginnings operating out of a cardboard cigar box, The Men's Warehouse in its latest fiscal year made nearly $2.5 billion.
George Zimmer was a pioneer of bringing clothing commercials to television in the 1970s. He coined the phrase "I guarantee it" after starring in his first commercial for the company in 1986. He went on to become the face of the company, starring in numerous other commercials. The slogan eventually grew to: "You're going to like the way you look. I guarantee it."
The company gave no reason behind Zimmer's firing. He had an estimated 3.5 percent stake in the company as of May 9, according to the Associated Press. Zimmer's photo remains posted on the website in the "About Us" section.
Zimmer's management style has been considered "untraditional" in the past but successful. In 2004 the company's turnover rate for store managers was just below 10 percent in comparison to the average rate of about 25 percent. At a time when Zimmer had nearly 9 percent stake in the company, all full-time employees received a three-week paid sabbatical on top of their regular vacations every five years.
In the same year, Zimmer also brought spiritual guru Deepak Chopra onto the board. In the press release, The Men's Warehouse also informed that Zimmer had not yet been made aware of his dismissal. Severance has yet to be discussed.