Jos. A Bank Clothiers Inc. confirmed that it paid Eddie Bauer a $48.5 million kill fee in the first quarter to break up its acquisition agreement with the outdoor company and accept a bid from rival Men’s Wearhouse.
Jos. A Bank, which sells suits and other men’s apparel through a national chain of its own stores, confirmed the amount in its earnings report for the first quarter ended May 3, 2014.
The break-up fee contributed to $75.4 million, or $1.65 per diluted share of “strategic activity costs,” the company incurred during the quarter, including fees and expenses related to the Company's strategic activities, which also included legal and professional fees and expenses incurred in connection with various merger and acquisition activities and incremental incentive compensation related to its ultimate merger with Men's Wearhouse. Even after excluding those costs, Jos. A Bank still reported a loss was $37.1 million, or $1.33 per diluted share.
