Formal clothing specialist Men's Wearhouse has been ordered to pay $42.6m in damages to a former licensee of its JA Apparel business.

The decision was the result of the arbitration between its subsidiary JA Apparel Corp, and a former licensee of JA Apparel. The arbitration, initiated by the former licensee, related to an alleged breach by JA Apparel of license agreements for the manufacture of certain Joseph Abboud branded merchandise. 

In an SEC filing on Friday (16 January), The Men's Wearhouse said it does not believe that the former licensee's claim had merit, adding: "The company is surprised and disappointed at the outcome but has agreed to pay such award to resolve the dispute."