Story posted Wednesday, June 17, 2009
Clock Winds Down As Deal To Save Hartmarx Nears
Businesses, individuals or any other entities owed money by the Hartmarx Corporation, or any of its subsidiaries, have until Monday, July 27 at 3 p.m. central time to file notice with the company or potentially lose their claim as the company emerges out of bankruptcy.
In addition to Hartmarx, the company owns 50 subsidiary companies including Des Plaines' Hart Schaffner Marx clothing plant, home to about 600 employees. Hartmarx filed for Chapter 11 bankruptcy protection earlier this year in January against creditors, including its largest, Wells Fargo Bank.
A federal bankruptcy judge in Chicago accepted a $128 million bid on Monday, June 1 from Emerisque Brands U.K. eliminating a bid said to be preferred by Wells Fargo that would have liquidated the company and placed 3,500 workers, including those in Des Plaines, out of work.
Other bidders have until Friday June 19 to make offers. On Monday, June 22 offers will be reviewed. On Wednesday, June 24 an auction with remaining bidders will be held and on Thursday, June 25 the sale is expected to be completed. The court will not accept any bid lower than Emerisque's offer.
Sources have told the Journal & Topics Newspapers of an unconfirmed rumor that Men's Wearhouse might make a higher bid for the company. Men's Wearhouse officials did not return calls to the Journal and a Hartmarx spokesman would not comment.
The issue of Hartmarx bankruptcy has become a political lightning rod as the Des Plaines manufacturing plant makes suits for President Barack Obama and Wells Fargo accepted $25 billion in federal bailout money.
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