George Zimmer's Generation Tux acquires online rival

The fledgling but growing online formal menswear rental category tuxedo rentals market has a new power player.



Generation Tux, the online suit and tuxedo rental company founded in 2014 by retail veteran George Zimmer, who founded Men’s Wearhouse, has completed the acquisition of Menguin for $25 million. The announcement comes at a time when Menguin, founded in 2013, has experienced three years of 800% compound annual growth rate, according to a company statement.



"I’ve always known a good suit when I’ve seen one, just as I’ve always known a good investment when it comes my way,” said Zimmer. “We built Generation Tux to be the ultimate high-tech, high-touch clothing rental experience. Menguin’s digital marketing and entrepreneurial leadership sparked my interest; upon meeting, it became clear that we could do more together than apart.”



The two companies will operate as separate brands under the new holding company, Gen Tux, while leveraging their combined operational, technological, fashion and fulfillment expertise. Executive leadership of both organizations will move up to the holding company level, with Zimmer serving as chairman and CEO of Gen Tux.



Bringing Menguin into the fold is part of Generation Tux’s larger e-commerce strategy to strengthen its technological foothold and establish clear market dominance in the yet nascent industry of online tux rentals.



“When George first approached us about marrying the entrepreneurial spirit and marketing technology of Menguin with the backend technology, brand legacy and menswear expertise inherent in the Generation Tux name, we immediately embraced his vision for the union,” said Justin Delaney, now president of Menguin and Generation Tux. “Together, we are well-positioned to become the singular, dominant player in the online formal menswear rental category.”