Addison, Illinois-In a move to gain greater advertising and merchandising opportunities, Gingiss Formalwear Inc.'s holding company has closed a stock-for-stock merger with an affiliate of Van Nuys, California-based formalwear chain Gary's Tux Shops. Financial terms were not disclosed.
As a result of the merger, which closed in later January, the two companies formed a new holding company, temporarily named Gary's Group Inc. Nearly all the company's 430 U.S. stores will use the Gingiss name, said Michael Corrao, president and CEO of Gingiss.
Gary's Group is expected to gross $155 million in sales this year, Corrao said, adding that Gingiss sales for 2000 were about $100 million. He would not disclose earnings for the privately held Gingiss.
Gingiss operated about 250 stores before the merger and has focused its expansion plans on the Midwest, Northeast and Southeast. Its latest merger bolsters its presence on the West Coast.
The merger with Gary's is the latest deal forged by Gingiss. In November, the retailer acquired Indiana Tux's 12 stores. Recently the company announced plans to buy another company, the 41-store chain operated by President Tuxedo Rental of Michigan. -Crain's Chicago Business