The Week of December 17th in Review

Posted on December 23, 2012 Written by Leave a Comment

 

By Paul Pannone

The world didn’t end on 21-21-2012 but the event may have helped push for the end of how some businesses operate in the future. An ongoing eWedNewz investigation looking at the bailout of big businesses shows how Social Media displaces traditional forms of operation, especially advertising. Established companies and those who head them are realizing it’s time to pack it in and enjoy the fruits of their labor, allowing a younger generation of CEO’s and management style that understands Social Media and connecting with today’s consumers to assume a leadership role.

The top newZ story for this week was the breaking story surrounding the sale of a majority stake in Jim’s formal wear to Armory. eWedNewz broke the story on December 20th, preceding a Press Release detailing the information. A private exchange with Gary Davis, CEO of Jim’s, told eWedNewz how the “family business” will now continue in the same way except now it’s two families running the company, not just one.

A follow up story explaining the changes taking place in the tuxedo rental business was prompted by feedback received from confused people of the tux regarding the move of Joseph Abboud, the person, now head of the creative department at Men’s Wearhouse. In an ongoing eWedNewz investigation malicious information spread by competing tuxedo manufacturers who create and make fictitious brand products spreading false rumors are found to be at the heart of the misinformation.

The world watched as the last victims of the shooting in Connecticut were laid to rest. eWedNewz continues to poll the community to see if posting in the usual way during such horrific events is proper.

 

Coming up this week we look back on what made top newZ in 2012.

 

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Filed Under: Advertising and Marketing, Anti Fairy Dust, bridal, Economic news, eWedNewz, eWedNewz Exclusive, General News, Holidays, Men's formal wear, Social Media, The Groom, The Internet, The Week in Review, tuxedos, Uncategorized, wedding industry, wedding websites Tagged: , , , , , , , , , , , , , ,

PRESS RELEASE: Jim’s Formal Wear Partners with Armory Capital

Posted on December 21, 2012 Written by Leave a Comment

For Immediate Release                               

Contact:  Steve Davis  President & COO

618-224-9211

stevedavis@jimsfw.com 

Jim’s Formal Wear Partners with Armory Capital,

Maintaining Family Ownership and Securing Bright Company Future

ST. LOUIS (January 7, 2013) — Jim’s Formal Wear, the world’s largest wholesale formal wear rental company, announced today a partnership with Armory Capital of Champaign, Ill. This partnership represents a merger of two strong family businesses and will provide Jim’s Formal Wear the capital for future growth opportunities.

“One of the most important times for a family business comes when it’s time for one generation to help the next move into owning and leading the business, and it is now time for my son, Steve Davis, to lead this company into the future,” said Gary Davis, Chief Executive Officer. “Frequently, a transition like this involves new financing arrangements, and we are fortunate to have Armory Capital partner with us because they share our values. With the merger of these two family-owned companies, it’s ‘business as usual’ for Jim’s Formal Wear.”

Jim’s Formal Wear is headquartered in Trenton, Ill., in a state-of-the-art, 102,000-square-foot facility.  The company employs over 600 people. The company also has 9 other regional service centers located throughout the United States.

The company enjoys a history of growth by acquiring other companies or operations that are a good fit with Jim’s Formal Wear business. “This partnership with Armory Capital will ensure that the resources are available when those opportunities present themselves,” Gary said.

Armory Capital is the family office for the Meyer family in Champaign, Ill. A family office is a private company with family values and culture that manages investments for an individual family and helps them diversify by investing in and holding other companies. The Armory family office includes four people from Champaign, Ill.

Steve Davis, COO of Jim’s Formal Wear, said that the Davis family was very careful in interviewing and selecting Armory Capital as the new financial partner for Jim’s Formal Wear.

“One of the top priorities was to ensure that our new partner would maintain our culture and the high level of commitment to sharing the company’s success with our team members and providing quality merchandise and service to our customers.”

Steve said they also wanted a company that invests for the long term, and Armory Capital met all of these criteria.

“As a family investment company, Armory Capital wants their portfolio company to grow, but they aren’t looking for a quick turn. Their preference is to hold investments and most importantly, they count on the existing management team to run the business because that is a big part of the reason they select an investment such as Jim’s Formal Wear.”

The financial arrangement with Armory Capital enables the Davis family to continue to have a significant investment in Jim’s Formal Wear. Steve Davis will transition from the role of President and COO to CEO over the next 12 months. Gary Davis will work closely with Steve during the transition and then enter into a long-term consulting contract to help with the transition and provide continuity.

About Jim’s Formal Wear

Jim Davis built Jim’s Formal Wear from a men’s apparel shop established by his father in 1922. Today, Jim’s Formal Wear is the largest wholesale formalwear rental company in the world, with 10 strategically located service centers that total more than 300,000 square feet of office, production and warehouse space. The company employs over 600 people and is privileged to serve nearly 6,000 menswear stores, bridal shops and other formalwear-related retailers in the country. Jim’s Formal Wear’s mission is “Doing whatever it takes to create the ultimate formal wear experience.”

About Armory Capital

Armory Capital is the family office for the Meyer family in Campaign, Ill. It is a private equity group founded by Jacob Ambrose, Rusty Freeland and Greg Lykins, in association with the August C. Meyer, Jr. family. The firm’s members have years of experience understanding the challenges and opportunities facing business owners and management teams. They believe in long-term partnerships based on mutual trust and integrity. The family has a track record of investing in and holding other companies, with deep and long roots with all of these companies.

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Filed Under: Breaking Newz, eWedNewz Exclusive, General News, Men's formal wear, Ongoing Story Coverage, Ongoing Story Investigation, Paul Pannone, Press Release, Proms, tuxedos, Uncategorized Tagged: , , , , , , , , ,

From Jim’s to Joseph Abboud The Renaissance of the Tuxedo Business

Posted on December 20, 2012 Written by 3 Comments

By Paul Pannone

Big news hitting the men’s tuxedo rental business in the past 48 hours flooded our inbox and phone messages from formal wear specialists around the country. The news of Joseph Abboud becoming chief creative director at Men’s Wearhouse and the eWedNewz exclusive breaking newZ of, Jim’s formal wear, the largest independently owned formal wear company, selling a majority stake of their business, set the formal wear business on fire.

 

Anxious tuxedo people say they’re excited about the new movie The Great Gatsby starring Leonardo DiCaprio, set in a time tuxedos were the style of the day.

 

The Jim’s newZ precedes any formal announcement and the Abboud story needs further explanation that has worried specialists wondering how Mr. Abboud’s new job at Men’s Wearhouse affects them. The simple answer is: it doesn’t.

Abboud lost his right to use his own name but not the right to earn a living. Until now Mr. Abboud was the Creative Officer at  Hart Schaffner Marx and his move to MW will do little, if anything, to change the long-standing relationship between FLOW formal and Joseph Abboud corporate, JA Apparel Corp, in New York. Discussions with high-level executives at both FLOW and JA Apparel say they plan to become even more aggressive in the men’s formal wear rental category since JA Apparel dumped Fabian Couture and became a brand for FLOW. It was then decided to use better fabrics to attract today’s consumer to replace the scratchy wool of old, used by past generations of tuxedo users.

eWedNewz has learned that Gary Davis, President of Jim’s, is traveling to company distribution centers to re-assure workers of the changes taking place at the company. Part of the changes include an upgrade and means to reach consumers in a new way.

An ongoing eWedNewz investigation shows the decline in the use of formal wear outpaces the decline in formal weddings. Part of the troubles includes the resistance and unwillingness of retailers to upgrade styles, fabrics and fit of garments; some of which date back decades.

This month eWedNewz learned of tuxedo stores changing hands from old-timers in their eighties to a younger generation of business entrepreneurs who realize the importance of keeping up with fashionable products and technology that is replacing traditional forms of advertising.

Tuxedo store owners say they’re seeing new movies that finally portray tuxedo in a positive way, hopeful the trend against wearing them will shift in their favor.

We will continue to watch all parts of the process but wonder what your thoughts are.

Is the tuxedo rental business changing?

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2012

Filed Under: Breaking Newz, Current Events, eWedNewz, eWedNewz Exclusive, General News, Joseph Abboud, Men's formal wear, Ongoing Story Coverage, Ongoing Story Investigation, Paul Pannone, Poll, retail, Social Media, The Groom, tuxedos, Uncategorized Tagged: , , , , , , , , ,

Jim’s Formal Wear Sells Majority Stake of the Business

Posted on December 20, 2012 Written by 3 Comments

By Paul Pannone

Jims formalwear, started by Jim and Betty Davis in  1964, considered the formal wear business’ premier organic independently owned  company,  has entered into an agreement with Armory Capital. The deal is expected to close in the immediate future giving the investment firm a majority equity position in the formal wear company.

Details of the deal are not available. But a holiday exchange with Gary Davis of Jim’s is expected to lead to an interview after the holidays.

Jim’s formal wear becomes the latest company that helped shape its industry to enjoy the fruits of their labor and turn over a majority part of the business to an investment firm.

 

 

 

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Filed Under: Breaking Newz, Bridal Shops, Current Events, eWedNewz, eWedNewz Exclusive, General News, retail, The Groom, tuxedos, Uncategorized Tagged: , , ,

The Tuxedo Business Gets a Boost from Vera Wang and Tony Bowls; What a Situation

Posted on April 25, 2012 Written by 4 Comments

By Paul Pannone

2012 will be remembered as the year tuxedos were reinvented– not by the narrow-minded People of the Tux– but by women dress makers and a TV personality. After years of decline the sale and use of tuxedos are on an upswing, attracting foreign manufacturers and other interested investors that hear the buzz and look to capitalize on the resurgence.

Updated fit, new fabrics and stylish innovation get the credit for the upswing, led by manufacturers that use their tailored suit division intelligence and are able to quickly update silhouettes for a consumer no longer willing to wear his father’s tuxedo.

 

According to Google searches for the term “tuxedos” and related terms have been in decline since 2006. But current related tuxedo searches are up significantly at this time of year.

 

Internet searches hitting eWedNewz stories about tuxedos continue to grow in peak demand times. Searches for Vera Wang tuxedos are gathering attention, fueled by gown sales at David’s Bridal. Brides that buy Vera Wang dresses are directed to Men’s Wearhouse for the formal wear– a natural choice.

The popular Tony Bowls dress brand was used by Jim’s formal wear to create a Tony Bowls tuxedo that also sold well and is renting for prom. Again driven by dress sales, the emotional connection is a natural transfer from female to male escort.

The tuxedo talk of the season came from the Jersey Shore TV celebrity, the Situation, who promoted the line. Sources like TMZ, MTV, MSNBC and countless other news sources created a media event for the line. The orders and production for the number one new tuxedo for 2012, the Avalon, was cutoff, creating an even higher demand for the product.

So what do all these new tuxedo brands have in common? The same people who make Calvin Klein, Ralph Lauren, Joseph Abboud and other retail brands– FLOW Formal– make the garments for Vera Wang, Tony Bowls and the Situation.

Fashion sources say they’re not surprised at the growing buzz for tuxedo use. Expert, Jim Duhe, told eWedNewz;

“Interest in Vera Wang tuxedos is growing.  Why? Was there some type of divine intervention?  Did an arch angel come down from the sky and suggest that people should search the internet for Vera Wang tuxedos?  Did the compulsion to search for Vera Wang Tuxedos come to people in dream form?

Maybe you’ve noticed that Vera Wang tuxedo ads now are included in all major national bridal publications.  The campaign is  modest — spreads in each issue.   No retail locations are specified on the ad.  However, readers are directed to go to the Men’s Wearhouse web site.  Interesting.”

The rise in interest for tuxedos sparks interest from manufacturing and licensing organizations that want to get into the tuxedo business but admit they know very little of where to begin. Most don’t realize the cost involved and quickly back away when they find out what is involved.

 

 

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Filed Under: Advertising and Marketing, Calvin Klein, Celebrity, Men's formal wear, Promotions, Ralph Lauren, Social Media, The Groom Tagged: , , , , , , , , , ,

Mon Cheri and Jim’s Formal Wear get set to sign Tuxedos by Tony Bowls

Posted on December 16, 2011 Written by 3 Comments

 

By Paul Pannone

 

eWedNewz has learned Mon Cheri, of Trenton, NJ, among the nation’s leading manufacturer and marketer of event dresses, is partnering with the nation’s leading tuxedo wholesaler, Jim’s formal wear, Trenton, IL, to licence and promote men’s tuxedos under the Tony Bowls label.

A tip and an eWedNewz story led us to Jim’s after several other possibilities denied any involvement as the Mon Cheri partner.

A discussion with Chuck Brueggeman, senior VP at Jim’s formal wear, confirmed the deal was near completion.

“I have no idea how you found out about the deal but since your story we’ve been getting calls. Yes, we are very close to a deal with Mon Cheri but that’s all I can say right now,” said Brueggeman.

A normally very cooperative Steve Lang deferred any comment about the deal saying;

“You seem to be in the right direction Mr. Investigative Reporter– let’s see how good your really are.”

 

Jim’s, Mon Cheri, FLOW Formal and Tony Bowls team up to create a new era of men’s formal wear. eWedNewz is there to cover it.

 

The Tony Bowls celebrity name is highly regarded in the prom dress arena. One of Tony’s dress designs, Unchained Melody, was worn by American Idol finalist, Lauren Alaina, last season. Tony’s flair for design will influence tuxedos that will be manufactured by FLOW Formal.

More details and information will follow when the deal is finally signed. How’s that Mr. Lang?

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Filed Under: Breaking Newz, bridal, Bridal Dresses, Bridal Shops, eWedNewz, General News, Men's formal wear, Paul Pannone, Uncategorized, wedding industry Tagged: , , , , , , , ,

More Major Wholesalers Give FLOW Thumbs Up and Orders

Posted on November 14, 2011 Written by 2 Comments

By Paul Pannone

More formal wear industry leaders say they’re excited about the approaching 2012 season, led by products, marketing, promotion and buzz created by FLOW formal with the Situation. eWedNewz continues our coverage talking with formal wear experts that have invested hard dollars to support a move to get tuxedos noticed. Many say the industry was plagued by bad publicity and a negative spin by media sources that felt tuxedos were old.

 

Gino Guarnieri (far right) makes smart choices for his tuxedo business. His decision to add Situation products by FLOW for next season was influenced by product innovation and consumer recognition created by the TV celebrity star.

 

 

Discussions with company owners can’t disagree with why tuxedos were getting such a bad rap, especially because of bad shopping experiences from retailers renting old merchandise.

“In today’s society consumers are much more educated than at any point in time,” says Gino Guarnieri of Geno’s in Lexington, KY.

Guarnieri cited the double-edge sword of consumers knowing about every aspect of purchasing but told eWedNewz the fix can be quite easy.

“Simply give them what they want, don’t lie to them and don’t overcharge,” he told eWNz.

According to Guarnieri style creation was the main reason why he invested in the Avalon. Guarnieri talked about the distinctive style and fit of the garment as a stand-alone reason to own the product. But he went one step further in commending FLOW Formal for collaborating with a hot property like the Situation, leveraging his reach to consumers.Guarnieri also reminded us of all the other facets of the FLOW organization, including the world-class brands they offer.

“Let’s not forget all the other things FLOW does right– like Ralph Lauren, Calvin Klein and Joseph Abboud. They’re very powerful brands; really, no tuxedo organization can be successful these days without branded merchandise,” he feels. Guarnieri gave especially high marks to the 2012 Ralph Lauren Line.

Guarnieri and other major tuxedo wholesalers like Jim’s Formal Wear in Trenton, Il, feel the Situation’s impact and mark on the business was a determining factor in ordering products for the 2012 season.

Gary Davis of Jim’s told eWedNewz, “It’s an investment we make as buyers to support manufacturers in anything new and innovative to help the industry. We always try to support and reward anything that gets tuxedos noticed and worn. We especially get behind programs that attracts a younger consumer.”

The Situation gave a personal shout out to Jim’s for the Chicago market creating buzz and excitement. According to FLOW more programs to create traffic and attention to stores that support their products are being developed. Jim’s and Geno’s join Paul Morrell as major wholesalers that carry the Situation, Ralph Lauren, Calvin Klein and all other FLOW products.

 

 

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Filed Under: Calvin Klein, Celebrity, eWedNewz, General News, Joseph Abboud, Men's formal wear, Paul Pannone, Ralph Lauren, The Groom, wedding industry Tagged: , , , , , , , , , ,

The Situation Tweets about Tuxedos and Jim’s Formal Wear’s at Chicago Market

Posted on September 23, 2011 Written by 4 Comments

By Paul Pannone

Since making national news  the Situation continues to promote tuxedos, revitalizing the tired look that has fallen out of favor with younger users. Since the Situation’s deal with FLOW Formal, his interest in tuxedos continues to grow. The television reality star is seen wearing his line everywhere, increasing exposure and the possible use of the garments beyond the few lifetime events that limited how tuxedos could be used.

Mike the Situation Sorrentino can be seen wearing tuxedos everywhere. eWedNewz has learned he will be appearing in high-profile publications wearing his new line.

 

On his Twitter feed the Situation promoted Jim’s formal wear’s participation at Chicago Market .

 ”Come see my Situation Tuxedo on the runway @ the Chicago Bridal Market @JimsFormalWear booth 9058! jimsformalwear.com“

 

Jim’s and most formal wear stores are adding the Situation line for the 2012 season, lifting the ceiling and limitations that have kept tuxedos old and farty, exchanging the image for new and exciting. Consumer interest and reaction is being tracked in all forms of Social Media forums.

According to FLOW sources the Sitch is getting behind all of his products and regularly mentions them to millions of his fans.

eWedNewz will bring you highlights of the Chicago events. Follow eWedNewz on Twitter

 

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Filed Under: bridal, Bridal Shows, Celebrity, General News, Men's formal wear, retail, Social Media, The Groom, Trade shows, Uncategorized, wedding industry Tagged: , , , , , , , ,

Alfred Angelo and Jos. A Bank Team Up with Tuxedos

Posted on August 29, 2011 Written by 1 Comment

By Paul Pannone

The slow but steady move into tuxedos continues at Jos. A. Bank, hindered by a sluggish economy and even worse climate in the men’s tailored suit business. Reports say limited success in the current traditional arrangement with formal wear supplier, Jim’s formal wear, prompted the move to partner with a major dress company, Alfred Angelo.

According to a release, “Jos. A. Bank will be the tuxedo rental vendor of choice in 53 Alfred Angelo Signature stores in the US.  In turn, Alfred Angelo will be the exclusive wedding gown partner for JoS. A. Bank.  The venture also includes partnering on bridal shows, select marketing collateral, web content, blogs, and social media.”

Sources near the story say the move will mirror a tuxedo referral arrangement just like David’s Bridal and Men’s  Wearhouse.

A planner in the Wedding Water Cooler said,”The GM from Jos A. Banks here called me for a meeting next week regarding some big news. I’ve helped them in the past with events for grooms.”

 

 

 Organizations like the Great Bridal Expo stand to benefit from arrangements like Jos A Bank and Alfred Angelo, as combined advertising and marketing budgets increase their bargaining power and earning potential.

 

 

The news of the Jos A Bank and Alfred Angelo collaboration is of special interest to promoters that feared the dominance of single organizations in the past– in this case, Men’s Wearhouse– that hindered their ability to negotiate prices for their services. In an eWedNewz story in May we reported:

For marketing and advertising, Bank has promoted formal wear in their television commercials for over a year. eWedNewz intelligence learned of Bank’s interest in partnering with The Great Bridal Expo® before its owner, Bill Heaton was even aware. “You were right and knew it before we did,” said William Heaton after the deal was finally completed.

Conversations with Heaton in the past suggested a better overall negotiating position for his Great Bridal Expo, since Bank decided to participate in his shows and drive bidding higher for the runway portion of the show. We asked Heaton whether the current collaboration between JAB and Alfred Angelo would have any further impact on how he would price the runway. Heaton apparently did not wish to respond to the questions involving this story.

Sources told eWedNewz the partnership between Alfred Angelo and Jos A Bank will split the cost of the GBE shows, along with all other marketing, confirming their public announcement.

 

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Filed Under: bridal, Bridal Dresses, Bridal Shops, Bridal Shows, General News, Men's formal wear, Promotions, Social Media, The Groom, Trade shows, wedding industry, Wedding Water Cooler Tagged: , , , , , , ,

Jos. A. Bank Still Not Sold on Tuxedos

Posted on June 2, 2011 Written by 1 Comment

 

By Paul Pannone

Jos. A. Bank got battered by a Wall Street selloff yesterday, as stock price fell over 13% due to lower earning and sales performance expectation. The disappointing announcement came on a day when investors were in sell-mode fueling the stock slide.

eWedNewz monitors Bank’s progress in the volatile tailored suit business and watches the progress of their tuxedo rental program. Sources near the story said Bank shifted plans from creating their own inventory to partnering with Jim’s Formal Wear, tagging them with the liability. Both Bank and Jim’s moved cautiously into the arrangement, abandoning initial reports that said a very aggressive move was planned to claim their portion of the rental market, targeting Men’s Wearhouse. Bank is interested in the Men’s Wearhouse 33% market share of tuxedo rentals in the U.S.

But the move is slow, as a test pilot program that began in  32 of the retailer’s 476 stores remains only two-thirds complete as of May 1. Current plans won’t see the complete rollout until later this year. “Because tuxedo rentals represent forward business, sales in 2010 covered the company’s investment.  and it won’t be until 2011 and beyond when it will be a meaningful contributor to the bottom line,” said Neal Black of Bank in a recent statement.

According to a WWD story, the caution continues. In an interview the verdict on the success of tuxedo rentals is still not rendered.  ”Regarding the company’s newly launched tuxedo rental program, Montagna said, “Investors have been looking to robust growth…[but] the comp would imply this is not occurring.”

Black said that the company did not break out sales for this category of business and won’t make a determination on the success of the initiative until after the prom and wedding season. “We are getting sales,” he said, noting that the company doesn’t own the inventory and has invested little to get into the business. “There’s only upside.”

Reports say Tuxedo rentals along with all other wedding related business is soft this season, contrary to positive wedding reports offered up in late 2010. eWedNewz continues to monitor the story.

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Filed Under: Economic news, facts and figures, General News, Men's formal wear, retail, The Groom, Uncategorized, wedding industry Tagged: , , ,