Menswear retailer Tailored Brands has announced that it has sold its MW Cleaners business on March 3, 2018, for approximately $18 million, as part of the company’s strategy to focus on its core businesses and unlock cash flow.
At the time of the transaction, MW Cleaners operated 38 retail dry cleaning, laundry, and heirlooming facilities in Austin and Houston, Texas.
“MW Cleaners operated as an independent retail dry cleaning business separate from our vertically integrated dry cleaning operations that support our formalwear rental business,” said Doug Ewert, chief executive officer at Tailored Brands. “As part of our commitment to optimize our portfolio, focus on our core businesses and unlock cash flow, we decided to sell MW Cleaners.”
This transaction brings the company’s roster of brands to include Men’s Wearhouse, Jos. A. Bank, Joseph Abboud, Moores Clothing for Men, and K&G.
This news comes at the retailer reported its sales figures for the fourth quarter and fiscal year of 2017.
Total net sales for the year increased 8.4 percent to $859.9 million, including a $45.7 million benefit from the 53rd week. Retail net sales increased 6.6 percent primarily due to an increase in retail segment comparable sales of 2.5 percent and a $40.7 million benefit from the 53rd week. Corporate apparel net sales increased 32.2 percent, primarily due to the rollout of new uniform programs in the U.S. and U.K., a $5.0 million benefit from the 53rd week and the impact of a stronger British pound this year compared to last year.
Men’s Wearhouse comparable sales increased 2.3 percent. Comparable sales for clothing increased primarily due to an increase in transactions, partially offset by a decrease in units per transaction, while average unit retail was flat. Comparable rental services revenue increased 2.1 percent, primarily reflecting an increase in rental units.
Jos. A. Bank comparable sales increased 5.3 percent primarily due to an increase in transactions and units per transaction that more than offset a decrease in average unit retail. K&G comparable sales decreased 1.7 percent primarily due to lower transactions partially offset by an increase in units per transaction, while average unit retail was flat. And Moores comparable sales decreased 1.4 percent primarily due to a decrease in average unit retail partially offset by an increase in transactions, while units per transaction were flat.
Added Ewert: “In 2018, we remain focused on executing three key growth strategies: expand our custom business and make buying a custom suit as easy and affordable as buying a suit off the rack, strengthen our brands and grow market share by communicating the quality selection and service we provide a great value, and enhance our omnichannel experience by combining the high-touch service we offer in our stores with the convenience of online shopping.”