Hartmarx Files Chapter 11
Hartmarx Corp., the venerable Chicago suit manufacturer and parent company to West Coast brands Monarchy and One Girl Whohellip;, filed for chapter 11 bankruptcy protection. The 130-year-old company secured up to $160 million in pre-petition commitments from its existing lender, a debtor in possession credit facility that will provide immediate liquidity to pay its lenders while the company “pursues strategic alternatives,” according to a company statement. The publicly traded company has also asked the court to allow it to continue business operations, including meeting payroll and continuing various employee benefits. According to a Hartmarx statement, the decline in apparel purchases “particularly at the luxury price points,” and a contraction in borrowing capacity led to the decision to file. Hartmarx’s Canadian and other non-U.S. affiliates are not included in the filing and have not sought bankruptcy protection.
quot;We believe that today's filing and our DIP financing provide us with sufficient funding and allows us to operate our business currently as we pursue strategic alternatives. In that regard, we have retained Moelis & Company LLC as our financial advisor to evaluate strategic and financing alternatives, including the identification of potential parties to invest in or acquire the company,” said Homi Patel, Hartmarx chairman and chief executive officer. In addition to West Coast labels Monarchy, One Girl Whohellip; and b. chyll, Hartmarx produces a number of its own brands, including Hart Schaffner Marx and Hickey-Freeman, as well as licensed lines Austin Reed, Burberry men's tailored clothing, Ted Baker, Claiborne and Pierre Cardin. —Alison A. Nieder
