Story posted Wednesday, June 10, 2009
Final Offer?
Time Remains For Another Bidder To Step In, Possibly Derail Proposal To Save Hartmarx
By TOM ROBB Journal & Topics Reporter
The sale of the Hartmarx Company to Emerisque UK will be finalized on Thursday, June 25 if no other bids come in before Friday, June 19 to bring Hartmarx out of bankruptcy.
The deal would save as many as 3,500 jobs from possible liquidation, 600 of which are located at a manufacturing plant in Des Plaines.
A federal bankruptcy judge accepted Emerisque's $128 million bid to take over Hartmarx in a Chicago courtroom on Monday, June 2 after Hartmarx directors voted to accept the British company's offer.
Union officials in court last week said Emerisque increased its offer from $119 million to $128 million the weekend before the hearing. Hartmarx's largest creditor, Wells Fargo Bank, called the $119 million offer "not credible" and refused to comment after the court hearing.
Des Plaines Mayor Marty Moylan and officials who represent Hartmarx workers through the Service Employees International Union (SEIU) expressed cautious optimism on the deal, explaining that if another bidder offers more than Emerisque's bid before June 19 the deal could be derailed.
The Journal heard unconfirmed rumors late last week that Men's Wearhouse was preparing a competing bid for the company and planned to market several Hartmarx brands, including Hart Schaffner Marx clothing made in Des Plaines and worn by President Obama. Sources said Men's Wearhouse would manufacture those suits outside the United States threatening existing U.S. manufacturing plants. Calls to Men's Wearhouse corporate offices were not returned.
In last week's court appearance before U.S. Bankruptcy Judge Bruce Black, lawyers for Hartmarx and Wells Fargo took several breaks to haggle over details of the deal.
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