After Hours Formalwear, a May Department Stores chain, has made a $23 million play for 125 Gingiss Formalwear and Gary’s Tux Shop units, according to their parent company, The Gingiss Group. May declined to comment on the proposed transaction.
The Gingiss Group, which operates 236 Gingiss and Gary’s stores catering to wedding and black-tie events, filed for Chapter 11 bankruptcy protection Monday; the May purchase is contingent on bankruptcy court approval. Gingiss expects the deal to close by the end of the year, said spokesman Michael Corrao, unless another bidder becomes involved.
"If another bidder comes along and wants all of the stores, they’ll get all of the stores," he said.
If not, and May buys the units, Gingiss will likely close the remaining stores, Corrao said. The company has been hurt by a softened economy and increased competition from larger chains, such as Men’s Wearhouse.
May’s After Hours, acquired in 2002, is a 328-unit chain with stores in 27 states east of the Mississippi River. It is part of the company’s bridal group, which is expanding. Last month May bought the 66-store, Midwestern-based Desmonds Formalwear. In June it purchased the 25-store, Chicago-area Modern Tuxedo. The bridal group also includes the 200-store David’s Bridal, acquired in 2000. May has opened 20 more David’s Bridal units this year, and expects to roll out 10 more by the end of the year.
Corrao speculated that May is interested in Gingiss because most of its stores are in Midwestern and West Coast states where After Hours does not have a presence.