After recently moving into the spotlight thanks to its role as Barack Obama’s suit-maker of choice, Chicago-based Hartmarx Corp. has filed for bankruptcy.
Fortunately for our new president, the company has secured $160 million from creditors, so they should be able to continue making suits for a while. Plus, they’ve retained Ken Moelis’s Moelis & Co. to find investors or potential buyers, which bodes well for Hartmarx’s future. Ken Moelis is a veteran dealmaker who had a good 2008, helping Yahoo keep Microsoft away and working on the Anheuser-Busch-InBev deal. So, we feel confident that Moelis and Co. will find Hartmarx a buyer.
But, we do wonder how Hartmarx’s situation could affect legislation from our new administration. Obama has long supported Hartmarx because the company relies on union labour to make its clothes. Will the company’s situation lead to bills designed to protect union workers? Time will tell.
Ah, if only Hartmarx could’ve designed Michelle Obama’s inaugural gown.
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