Results tagged “tarp”

Suitmaker to the president, Hart Schaffner Marx, or Hartmarx, was bought by London-based Emerisque Brands for $128.4 millon. The deal was approved in June after several congressmen and state politicians pleaded with Wells Fargo, which took billions in federal bailout funds, to sell the clothier to Esmerisque, which agreed to keep production in the United States. Hartmarx slid into bankruptcy during the economic collapse of late 2008 as its access to revolving credit dried up. Wells Fargo held the bulk of Hartmarx's debt. As late as June the bank was reported to be considering selling the unit to the highest bidder for quick liquidation.

Hartmarx, the local suit-maker which filed for bankruptcy early this year after U.S. banks cut off credit amid the global financial meltdown, is expected to select a buyer later this week. Emerisque Brands resubmitted its bid for the troubled clothier Tuesday. Emerisque is believed to be the only bidder that will keep Hartmarx's U.S. operations largely intact. The London-based private-equity firm is interested in "acquiring substantially all of the assets" of the Chicago-based suit maker, and said it intends to operate the company "as a single going concern." The firm said in a prepared statement that "we believe in the potential and future growth of the Hartmarx family of brands, and recognize the value of a 'Made in America' label in the United States and in markets around the world," the company said in a prepared statement.

While Hartmarx employees were holding vigil outside of the Des Plains plant that makes the President's suits, State Treasurer Alexi Giannoulias was putting Wells Fargo on notice that their future business relationships with the State of Illinois could be in jeopardy. That's because Wells Fargo holds the majority of the bankrupt clothier's debt and is reportedly leaning toward liquidating the company's assets, recouping their funds quickly, but throwing over 3,000 people out of work. "Unless the company remains open, [Wells Fargo] will not be doing business with the state of Illinois any longer," Giannoulias told workers outside the plant.

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.

Hart Schaffner Marx, (known as Hartmarx), the maker of President Obama's suits, is having a tough time in this difficult economy. The maker of high-end men's suits saw a significant drop-off in sales at the end of last year, as the luxury clothing market suffered from the economic crash. As then-President-elect Barack Obama was preparing to head to Washington to take the reigns of an economy that was in a free-fall, the previous administration was busily shoveling taxpayer dollars into the financial system to to prop up a faltering banking system. Among the banks that took government money to stay afloat was Wells Fargo, which accepted $25 billion in Troubled Asset Relief Program (TARP) funds. Shortly after taking that money, however, Wells Fargo cut off credit to Hartmarx, which was subsequently forced to file for Chapter 11 bankruptcy protection. Since then the manufacturer of high-quality suits, which employs more than 3,000 people in Illinois and Michigan, has been trying to regain its footing in the luxury men's apparel business.

The saga of Mr. Beef's recent misfortunes continues today as co-owner Joseph Zucchero testifies before Congress regarding his recent struggles with Midwest Bank, which holds the lien on the River North institution, has cut off Zucchero's line of credit, and threatens to foreclose on the restaurant. This despite Midwest Bank recently being the recipient of $85 million in TARP funds from the Treasury Department. From the Tribune's "Swamp" Washington Bureau blog