Jos. A. Bank dropping Joseph Abboud

Tailored Brands, formerly known as Men's Wearhouse, has announced they will no longer be selling any Joseph Abboud labeled products at Jos. A. Bank stores. Instead, they will be restricting the sale of Joseph Abboud products to Men's Wearhouse and Joseph Abboud brick-and-mortar locations and online.

While Joseph Abboud merchandise was selling well in Jos. A. Bank stores, the decision was made to keep the chain all private label.

Although the Abboud label will no longer be at Jos. A. Bank, the designer will continue to oversee the design of product assortment.

Jos. A. Bank to stop carrying Joseph Abboud brand

“Even though I’m designing it, it’s more about building the monobrand of Jos. A. Bank,” said Abboud, chief creative officer of Tailored Brands, to WWD. “Strategically, this makes the most sense. We’re really working on re-energizing Jos. A. Bank. It has great DNA with a history that goes back to 1905 as a traditional men’s clothier and we want to reinforce that.”

Focus will be put on core products like navy blazers and khaki suits.

The Joseph Abboud brand has proven to be a very profitable acquisition for Tailored Brands. In 2013, they purchased the brand for 97.5 million dollars. In its first year under Tailored Brands, Joseph Abboud brought in 230 million dollars. The first standalone store opened on Madison Avenue in New York last year, and it is projected that the label will eventually have sales of 1 billion dollars.

Tailored Brands, on the other hand, has struggled since acquiring Jos. A. Bank for 1.08 billion dollars. For the three months ended January 30, they posted a decline of 11 percent, with a loss of 1.1 billion dollars.

Tailored Brands will post full first quarter results on June 8.

photo:josephabboud.com