Eddie Bauer Has Had Its Problems: Harrison

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Feb. 14 (Bloomberg) -- Financo Founder and Chairman Gilbert Harrison and Strategic Resource Group Retail Analyst Burt Flickinger discuss the pros and cons of the Jos. A. Bank and Eddie Bauer deal on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)

Financo.

Let's start with -- whether this deal is a defensive move aimed at fending off any further overtures from when -- from men's wearhouse?

Is that the case?

Good morning.

First of all, i totally disagree with what he said.

You will note in the press release we were retained in february 20 12, 1 of the first companies we called it was joseph a bank, -- eddie bauer, because we believe they fit with -- a fit with eddie bauer and joseph bank was superior.

It was a growth business.

Taken over by golden gate after bankruptcy.

All of the attributes of that joseph the bank has in terms of and management -- the management -- ok, but gilbert, you represent joseph a bank.

I understand that within your long and lengthy career.

Are you saying eddie bauer is not a brand that has been a train wreck for a decade?

It has had its problems.

They hired the guy who built both columbia and also -- into a tremendous opening.

He and his merchants are great people and great marketing people.

The team is going to be fantastic.

What, gilbert, is eddie bauer doing correctly now that makes it so attractive, in your opinion, to joseph a bank?

They have gone back to their roots as an outdoor company, a sportswear company.

They also have children and men's. it is going to give joseph bank the ability to expand into new categories, gain an international presence.

And there are meaningful cost synergies.

Gilbert heritage, stay with us.

Burt flickinger, i want you to reply.

-- gilbert harrison him stay with us.

Or click injured, are you seeing better traffic and merchandising at eddie bauer?

Eddie bauer heard by declining customer accounts, shopping malls across america and retailers spending less.

Gilbert is correct, the manager coming from columbia will help that -- merchandising.

There will be no ftc objections on this one, where there will be several objections -- this is a clean deal.

This is joseph bank in eddie bauer.

Gilbert, respond to this, please.

I want to -- you to respond to the idea that the transaction and men's wearhouse hangs over this and an arch.

How does men's wearhouse fit into what we see this morning?

Two things, first of all, when we agreed on this deal, our agreement gives a right to terminate the agreement shows men's wearhouse comes back with an unsolicited offer that the management and the board of joseph bank feels is superior.

They have a fiduciary duty.

We have met, we have discussed this.

I think it is very important to note that men's wearhouse would bring initial synergies.

But after two or three years of the synergies, you will have the slow growth.

Eddie bauer, if they continue to do what they do are doing, they were up 16% in december.

If they continue to grow, the opportunity for stock appreciation in this company will be significant.

So, i think you have to take these two things into account.

Elbert, what is specifically the message from joseph a bank to men's wearhouse right now -- gilbert?

We made an offer back in september with a 46% rhenium.

We did it on a friendly basis.

26% over their five-year high, 42% over the price the day before.

They waited two months to come back to us and they trashed us.

They said we were a terrible company.

They raise antitrust concerns.

In a turnaround with his pac-man defense, which i talked to tom about before -- and then they turn around with this pac-man defense and they say it is not antitrust.

We got subpoenas from the ftc and so did they.

There is a real chance of the deal may never get approved.

Gilbert harrison, appreciate your efforts.

And we should repeat again that mr.

Harrison does work for joseph a bank and represents them in his transactions.

And he pushes back of the idea it is a defensive move.

Can i buy one and get six bowties for free?

Now you've got -- with men's wearhouse and joseph a bank, you combine off-price the same way tjx did marshals and tj maxx.

We want to continue with our

This text has been automatically generated. It may not be 100% accurate.

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