Schakowsky Turns Up the Heat on Wells Fargo

By Kevin Robinson in News on May 7, 2009 5:35PM

As promised, Congresswoman Jan Schakowsky is turning up the heat on Wells Fargo, the largest holder of Chicago-based Hartmarx's debt, in hopes that they will select a company that will keep the storied suit maker intact and in business. Hartmarx has been in Chapter 11 bankruptcy since late last year, and three companies are vying to take over the maker of President Obama's suits. Recent reports indicate that Wells Fargo favors liquidation, yielding a quick return of the bank's funds at the expense of 3,000 midwestern jobs.

"I made it clear that I had thought, even without the $25 billion they got in TARP funds, we wanted him to take into consideration that jobs would be lost and to accept a bid that would actually keep Hartmarx open," Schakowsky told Progress Illinois. Wells Fargo CEO John Stumpf apparently told Schakowsky that he has an obligation to his shareholders. "I reminded him that taxpayers, including people who work at Hartmarx, have a stake in this too and are helping to bail out the company," she said.

The Service Employees International Union, which represents the workers at Hartmarx is holding a "public vigil" at the plant today, from 8 a.m. into the evening. "Hartmarx has a huge long history in Chicago, and is one of the signature clothing companies in the country, if not the world," Joe Costigan, treasurer of Workers United in Chicago and the Midwest region told the Sun-Times. "This is a viable company, and there are serious, legitimate bids. Any bankruptcy plan geared toward destroying the jobs our members have done for so many years is not something we're going to sit and watch happen."