What happened Shares of Tailored Brands (NYSE: TLRD) traded up more than 11% on Wednesday after a report surfaced that the men's apparel retailer has been approached by a private equity firm regarding a potential acquisition. The report is a rare piece of hopeful news for investors in Tailored Brands, a company that by its own account has faced "significant headwinds" in 2019. So what Tailored Brands, owner of the Men's Wearhouse and JoS. A. Bank chains, has grappled with short-term issues including unfavorable foreign currency exchange movements as well as longer-term issues such as a trend toward business casual in the workplace. Investors have largely headed for the exits, with shares down more than 75% over the past year. Image source: Getty Images. That decline has reportedly attracted takeover interest. StreetInsider on Wednesday said Tailored Brands has hired bankers after an approach from Sycamore Partners regarding a potential acquisition. The company has been offered about $10 per share, according to the report, which would be a substantial premium to Tailored Brands' $4.34 close on Tuesday. Now what It's important for investors not to overreact to rumors, but you can certainly understand why talk of a buyout would be celebrated. Tailored Brands is in a tough situation with no clear path to revitalization. A life raft in the form of a private equity buyout would be welcomed. Be warned that buying in at these levels in hopes of a quick payday from an acquisition is fraught with risk. Sycamore could get a close look at the books and decide to offer less or simply walk away, leaving holders with stock in a business desperate for a turnaround instead of a cash payout. 10 stocks we like better than Tailored Brands IncWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Tailored Brands Inc wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 1, 2019 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source