Men's Wearhouse announced today that the founder of the company, George Zimmer, has been fired, but did not say why.
The announcement comes on the same day the company was to have its annual shareholder's meeting, which has now been postponed. As of now, there's been no comment from Zimmer, who was not only the executive chairman, but the face of the brand. He appeared in commercials, telling customers "You're gonna like the way you look. I guarantee it."
The board said in the statement that they want to postpone the shareholder's meeting so that they can re-nominate the current directors without Zimmer. The statement also said the board “expects to discuss with Mr. Zimmer the extent, if any, and terms of his ongoing relationship with the Company.”
The news comes as a shock to analysts, who say that booting a founder just isn't done.
"This is very rare to fire a founder. Founders are generally entrenched in the company," said Eleanor Bloxham, CEO of The Value Alliance, a board advisory firm.
Zimmer started the company in Texas with one small storefront and reportedly didn't even have a cash register; instead, he used a cigar box.