HOUSTON, Oct. 9 (UPI) -- Retailer chain Men's Wearhouse, based in Houston, turned down rival Jos. A. Bank Clothiers Inc.'s offer to buy the company, saying it was too low.
"The board and management team are confident that continuing our strategic plan will create more value for shareholders than Jos. A. Bank's inadequate, highly conditional proposal," Doug Ewert, Men's Wearhouse chief executive officer and president, said in a statement.
Men's Wearhouse has nearly twice the number of outlets as Jos. A. Bank, 1,143 compared to 602, The Baltimore Sun reported Wednesday.
Jos. A. Bank proposed what it called a "non-binding, indication of interest," in mid-September.
With support from investment firm Golden Gate Capital, Jos. A. Bank offered $48 per share, a 42 percent premium to the share price on Sept. 17, the day before the offer was extended.
"We believe Men's Wearhouse's shareholders would want their board to explore with us the immediate and certain value they would receive in a transaction," Jos. A. Bank Chairman Robert Wildrick said in a statement released Wednesday.
Golden Gate has invested in Payless ShoeSource, Eddie Bauer, Zales, Pacific Sunwear and several other retail businesses.
In an online posting Wednesday on the Jos. A. Bank website, it was proposed that Wildrick run the combined company.