George Zimmer's comeback?
Hello, this is Erin Griffith filling in while Dan is out. Contact me here:erin.griffith@fortune.com or here: @eringriffith.
George Zimmer, founder of Men’s Wearhouse, last summer pitched venture capitalists on a new endeavor: Generation Tux, an e-commerce tuxedo rental business. His goal was to raise $22 million in Series A funding, according to a pitchdeck obtained by Fortune. The round would have given the company a pre-money valuation of $6.9 million.
Doing business as zTux, Inc., the company has obtained 13 trademarks for logos featuring the names “Generation Tux” and “Seven26.”
Zimmer's solicitation includes a final closing date of July 20, 2014, with plans to soft-launch the business last fall and fully launch in the first quarter of this year. In October, Zimmer announced at a Salesforce.com conference that he would disclose more details on a new "high tech, high touch" company in the next few months.
However, no announcement has been made, and Fortune was unable to learn whether the company raised the funding. Or even still exists. Attempts to reach Zimmer, his former PR representative and his CFO were unsuccessful.
Zimmer, who was listed as Generation Tux's chairman, founded Men’s Wearhouse in 1973. Dubbing himself a "business warrior monk," he became famous for his commercials and catchphrase, "You’re gonna like the way you look, I guarantee it." He served as the company's CEO and Chairman until 2011, when he relinquished the CEO role. In 2013, he was removed from the chairman role in a public dispute with the board of directors over control of the company.
Generation Tux sounds a bit like web-based tuxedo rental startup Black Tux, which has raised $15 million in VC funding since being formed in 2012. In late 2013, Zimmer offered to make a sizable investment in Black Tux, according to sources familiar with the situation. Black Tux, which positions itself as a renter of high quality tuxes, declined Zimmer's offer because it involved repositioning Black Tux down-market.
Generation Tux’s business plan is to rent tuxedos that cost $120 to $150. In the pitch, Generation Tux lists serial entrepreneur and venture investor Chris Hemmeter as the new company's CFO, and former Men’s Wearhouse executive Scott Silverstein as its CEO.
The pitch predicted $5.4 million in revenue in 2015, with plans to be cash flow positive by 2016. By 2018, Zimmer’s plan showed $82 million in revenue with profit margins of 47%. In late 2018, Generation Tux models an exit valuation of $520 million, which would deliver a 20x return for potential investors. That is, of course, assuming there was ever an actual entry valuation...
THE BIG DEAL
• Jawbone is in talks to raise upwards of $300 million in new equity funding from BlackRock, according to Fortune’s Adam Lashinsky. The financing could be a lifeline for San Francisco-based Jawbone, which previously raised more than $400 million but has since missed production deadline and fallen behind in the markets it helped create. Read more.
VENTURE CAPITAL DEALS
• Lytro, a camera maker based in Mountain View, Valif., has raised $50 million in new funding led by GSV Capital with participation from Allen & Co., Danhua Capital and existing investors. www.lytro.com
• Nasty Gal Inc., a Los Angeles-based online retailer of women’s clothing and accessories, has secured $12.7 million of a Series C round that could ultimately total $16 million, according to a regulatory filing. Existing backers include Index Ventures, while Re/Code reports that the round was led by Ron Johnson. Read more.
• Twenty20, a Marina Del Rey, Calif.-based “destination for crowdsourced, real-world imagry,” has raised $8 million in Series A funding. Canaan Partners led the round, and was joined by First Round Capital, Bullpen Capital and VersionOne Ventures. www.twenty20.com
• Citymaps, a New York-based social mapping platform has raised $6 million in new VC funding from firms like Nokia Growth Partners, Coatue Management and Acadia Woods. www.citymaps.com
• Skully, maker of a smart motorcycle helmet, has raised $11 million in Series A financing led by Walden Riverwood Ventures and Intel Capital, with participation from Formation 8, Techstars, Eastlink Capital and Western Technology Investments. www.skully.com
• Pixel Velocity, an Ann Arbor, Mich.-based data analytics and sensor company, has raised $10 million Series B funding from investors including Draper Triangle Ventures. www.pixel-velocity.com/
• Luxe Valet, a San Francisco parking app company, has raised $20 million in Series A funding co-led by Redpoint Ventures and Venrock Partners, according to TechCrunch. Read more.
• Lytro, a camera maker based in Mountain View, Valif., has raised $50 million in new funding led by GSV Capital with participation from Allen & Co., Danhua Capital and existing investors. www.lytro.com/
• High Fidelity, a San Francisco-based virtual reality startup, has raised $11 million in new funding led by Vulcan Capital. highfidelity.io/
• Ed Trips, a Boston-based maker of software for field trips, has raised $1.9 million in funding from an undisclosed group of investors. edtrips.com/
• Playfield, a gaming platform which makes the game Shark Punch, has raised $1.2M in seed funding led by London Venture Partners and DN Capital. playfield.io/
• Jampp, a London-based mobile ad platform for app makers, raised $7 million in a Series A round led by Highland Europe alongside Endeavor Catalyst, Innova and NXTP Labs. jampp.com/
• Airtable, a San Francisco-based mobile data startup, has raised Airtable raised $3 million in funding Caffeinated Capital, Freestyle Capital, Data Collective, CrunchFund, Box Group and angel investors. airtable.com/
• AirPR, a San Francisco-based maker of software for public relations professions, has sold its PR marketplace to The CTR Group. The company had raised $5 million in funding from 500 Startups, Correlation Ventures, Crosslink Capital, and Mohr Davidow Ventures. www.airpr.com/ (This brief has been updated to note that AirPR has sold its technology platform.)
• Betabox, a distributor of product samples created in the startup incubator of Mondelez International, has sold for an undisclosed amount of VaynerMedia. getbetabox.com/
• Peoplevox, a London-based provider of warehouse management systems, has raised $6 million in new funding led by Index Ventures. www.peoplevox.co.uk/
• Unify Square, a Bellevue, Wash.-based service provider for Microsoft products, raised $8.2 million in a Series B funding from Microsoft and angel investors. www.unifysquare.com/
• Emailage, a Phoenix-based provider of fraud prevention solutions, has raised $3.8 million in new VC funding led by Felicis Ventures. www.emailage.com
• Luxe Valet, a San Francisco parking app company, has raised $20 million in Series A funding co-led by Redpoint Ventures and Venrock Partners, according to TechCrunch. Read more.
• High Fidelity, a San Francisco-based virtual reality startup, has raised $11 million in new funding led by Vulcan Capital. highfidelity.io/
• Airtable, a San Francisco-based mobile data startup, has raised $3 million in funding Caffeinated Capital, Freestyle Capital, Data Collective, CrunchFund, Box Group and angel investors. airtable.com/
• Ed Trips, a Boston-based maker of software for field trips, has raised $1.9 million in funding from an undisclosed group of investors. edtrips.com/
• Playfield, a gaming platform which makes the game Shark Punch, has raised $1.2M in seed funding led by London Venture Partners and DN Capital. playfield.io/
• Jampp, a London-based mobile ad platform for app makers, raised $7 million in a Series A round led by Highland Europe alongside Endeavor Catalyst, Innova and NXTP Labs. jampp.com/
PRIVATE EQUITY DEALS
• Accela, a San Ramon, Calif.-based provider of cloud-based civic engagement solutions for government, has raised $143.5 million in new funding. New investors include ABRY Partners, while existing shareholders include Bregal Sagemount. www.accela.com
• Trax Technologies a logistics SaaS platform company, has agreed to sell a majority stake to Strattam Capital, in partnership with Trax’s Founder and CEO J. Scott Nelson. traxtech.com/
• DealerSocket, a San Clemente, Calif.-based portfolio company of Vista Equity Partners, has acquired FEX DMS, an automotive dealer management system for independent dealers. No financial terms were disclosed. www.dealersocket.com
• National Technical Systems Inc., a Calabasas, Calif.–based portfolio company of Aurora Capital Group, has acquired Trace Laboratories, a Palatine, Ill.-based service testing and analysis company. No financial terms were disclosed. www.nts.com
• TPG Capital Management has acquired a minority stake in Manipal Health Enterprises, an Indian private hospital company, for $145 million. www.manipalhospitals.com/
• Samson Resources, an oil and gas provider bought for $7.2 billion by KKR in 2011, has hired the restructuring teams of The Blackstone Group and Kirkland & Ellis to help repair the business, according to the NY Times. Read more.
• TorQuest Partners has acquired a majority stake in Envirosystems Inc., a Canadian industrial services organization, from Thornridge Holdings Ltd. No financial terms were disclosed. www.enviro-systems.com
IPOs
• Barnes & Noble (NYSE: BKS) filed for a $775 million IPO for its college bookstore unit, which is spinning off into an independent company. Read more.
• Auto Trader, the online car marketplace backed by Apax Partners, plans to list itself on the London Stock Exchange in March. The company previously rejected a buyout offer from Hellman & Friedman. www.autotrader.com/
EXITS
• DW Healthcare Partners has hired BMO Capital Markets to find a buyer for Reliant Rehabilitation Holdings Inc., a provider of outsourced rehabilitative therapy services, according to LBO Wire. www.reliant-rehab.com
• ZelnickMedia has hired Moelis & Co. and Morgan Stanley to find a buyer for Cast & Crew Entertainment Services LLC, a Burbank, Calif.–based movie and television crew staffing company, according to Reuters. The deal could be worth upwards of $500 million. Read more.
• Aereo, the streaming television company which raised more than $97 million in venture backing, has sold its assets for less than $2 million in a bankruptcy auction. www.aereo.com
• AirPR, a San Francisco-based maker of software for public relations professions, has sold to The CTR Group. The company had raised $5 million in funding from 500 Startups, Correlation Ventures, Crosslink Capital, and Mohr Davidow Ventures. www.airpr.com
OTHER DEALS
• Mort Zuckerman has hired Lazard to explore the possibility of selling the NY Daily News, as first reported by Buzzfeed. Read more.
• Penn Virginia Corp., a Radnor, Penn.-based energy producer, has hired Bank of America to explore a sale at the urging of Geroge Soros, according to the Wall Street Journal.
FIRMS & FUNDS
• Notation Capital, a New York-based seed fund run by former Betaworks executives Nicholas Chirls and Alex Lines, has raised $8 million to invest in early stage startups. www.notationcapital.com
• SolarCity, a San Mateo-based solar installer company, has announced plans to raise a $750 million fund, which includes a $300 million commitment from Google. The fund will invest in installing solar panels on home rooftops. www.solarcity.com
MOVING IN, UP, ON & OUT
• Celeste Barone has joined Commonfund Capital as chief financial officer. She previously was chief compliance officer and managing director of finance for Pomona Capital. Barone succeeds the retiring Linda Costa. www.commonfund.org
• Lo Toney has joined Comcast Ventures as a member of its Catalyst Fund, which invests in early-stage companies led by minority entrepreneurs. Toney is the former CEO of LearnStreet and was a general manager at Zynga. www.cvcatalyst.com
• Michael Carr has been named co-head of global mergers and acquisitions at Goldman Sachs and Gene T. Sykes has been named co-chairman. Carr was previously the head of mergers for the Americas and Sykes was a global co-head of the group. www.goldmansachs.com/
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