Hartmarx Is Said to Select a Buyer

Started by nandagopal, May 21, 2009, 08:17 PM

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nandagopal

The board of the Hartmarx Corporation is expected on Thursday to choose Emerisque, a private investment firm in London, as the buyer it prefers to bring the company out of bankruptcy, officials involved in the bankruptcy negotiations said on Wednesday.

The officials said that Emerisque planned to keep Hartmarx in operation and was offering 80 cents on the dollar for more than $100 million that Hartmarx owes its main creditor, Wells Fargo. Last week, Hartmarx said there were no credible offers.

Hartmarx is known for its Hart Schaffner and Marx and Hickey Freeman brands of men's suits.

Emerisque has repeatedly declined comment about its bid.

Wells Fargo has the right to object to the Hartmarx board's choice of buyer. On Wednesday, union leaders held a news conference outside the company's factory in Des Plaines, Ill., to urge Wells Fargo not to press Hartmarx to choose a buyer that would liquidate the company, causing the loss of 3,600 jobs.