May 20, 2009 12:31 pm US/Central
Workers At Obama Suitmaker Pin Hopes On New Offer
DES PLAINES, Ill. (CBS) ―
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A worker sews a suit at the Hartmarx plant. (File)
CBS
Workers at a suburban Chicago suitmaker say they hope a new offer for the company will avoid liquidation.
Union officials said Wednesday that London-based Emerisque has offered in excess of $100 million for Hartmarx Corp.
But Workers United Treasurer Joe Costigan says Wells Fargo still is trying to liquidate the company. Costigan made his remarks at a picnic and rally in Des Plaines.
Gov. Pat Quinn released a statement Wednesday in support of the Hartmarx Corp. workers.
"There's no time to waste. I strongly urge Wells Fargo to enter a deal to sell this company and save these important jobs," Quinn said. "U.S. taxpayers are investing billions of their tax dollars to rescue the country's banking system, including Wells Fargo. It's only right and just that this bank do everything in its power to make an agreement now that will ultimately benefit the lender, Illinois workers and the entire country."
Hartmarx filed for Chapter 11 bankruptcy protection in January.
The clothier makes
suits for President Barack Obama, including one he wore Election Night in Chicago.
Workers say they plan to fight liquidation, even promising to
stage a sit-in if necessary.
Wells Fargo has received $25 billion in federal bailout money, and has the option of either selling the bankrupt Hartmarx to bidders or forcing the company to shut down. If that happened, the 600 workers at the factory would lose their jobs.
"We are all upset that, they should give us another chance to make sure that somebody comes in who actually wants to bid," said Workers United Local President Ruby Sims told CBS 2's Susan Carlson earlier this month. "Take the bid. Let us work. We deserve to finish paying those bills, paying for our houses, taking care of our children."
"We will not leave the factories if they move and push to liquidate it and close down our jobs," Costigan said.
And there were reports Monday that Hartmarx may be split between men's and womenswear if it is sold to two buyers, according to a report in Women's Wear Daily magazine.
The scenario would have Hartmarx's women's brands, such as Monarchy and Exclusively Misook, being sold to New York-based Mistral, while the men's brands would be sold to Los Angeles-based Yucaipa, the report said.
None of the companies would comment.
Any deal would have to be approved by the bankruptcy court.
On May 11, Illinois State Treasurer Alexi Giannoulias walked into the Hartmarx factory building to appear in support of the workers' cause.
"Unless the company remains open, [Wells Fargo] will not be doing business with the state of Illinois any longer," he said.
Union officials lauded the vote.
"Voting to sit in, these workers are standing up for all of us," said Noel Beasley, Director of the Chicago/Midwest Regional Joint Board and Executive Vice President of Workers United. "The future of the economy and the future of this country are all about good jobs. The vote today says Hartmarx workers are going to hold banks accountable for how they spend taxpayers' money and how they contribute to the future of our economy."
Emerisque let a previous bid for Hartmarx expire earlier this month.
The Associated Press contributed to this report.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
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