Mumbai, The United States bankruptcy court for Illinois on 26 June approved the sale of most of the assets of Hartmarx Corporation to a consortium of SKNL North America BV and Emerisque UK for about $119 million (Rs572.39 crore at current rates). The transaction is expected to close in July. Both SKNL and Emerisque will make the investment jointly.
SKNL North America BV is a wholly-owned subsidiary of Mumbai-based S Kumars Nationwide Limited, which manufactures and sells branded textiles and ready-to-wear clothes.
Once the transfer of assets is complete, S Kumars Nationwide Limited (SKNL) and its operating partner plan to revitalize the brands that constitute the Hartmarx portfolio.
However, only half of the about 3,000 employees of Hartmarx will be retained, said Anil Channa, deputy managing director of SKNL group.
On 23 January, Hartmarx announced that 50 of its wholly-owned US subsidiaries had filed for bankruptcy protection under Chapter 11 of the US bankruptcy code.
Prior to court approval of Hartmarx’s acquisition, a competitive bidding process was conducted to achieve the highest possible value for Hartmarx’s stakeholders, an SKNL statement on Monday said.
Hartmarx is America’s largest men’s formal wear company and is a leading producer of luxury apparel. The company directly owns or controls 34 brands, which include Austin Reed, Ted Baker, Clairborne and Pierre Cardin.