- Associated Press
- President Barack Obama‘s inauguration tuxedo was made by Hart Schaffner Marx.
The company that owns men’s suit maker Hart Schaffner Marx, which is sported by both President Barack Obama and Republican presidential challenger Mitt Romney, filed for Chapter 11 bankruptcy Friday for the second time since 2009.
The company said it plans to auction its assets, with Authentic Brands Group kicking off bidding. It didn’t disclose how much the brand-licensing company is offering.
If Authentic successfully acquires HMX’s assets, it would license the brand to a new company that will hire HMX’s current employees.
Authentic, which is owned by private equity firm Leonard Green & Partners LP, owns or licenses the intellectual-property rights for the estates of Marilyn Monroe and Bob Marley, mixed-martial arts brand TapouT and clothing brand Silver Star. It purchased sports-equipment maker Prince Sports out of Chapter 11 earlier this year in a similar deal.
HMX has also secured $65 million in bankruptcy financing from Salus Capital Partners, which is also one of HMX’s lenders, to keep the company operational during its Chapter 11 case, according to a news release.
In addition to Hart Schaffner Marx, the company owns or licenses high-end brands including Hickey Freeman, Coppley, Christopher Blue, Bobby Jones, Argyle Culture, Austin Reed and Sansabelt. It didn’t provide a reason for entering Chapter 11 a second time. But during its first case, HMX, which was then known as Hartmarx Corp. , blamed low demand for its products by recession-weary consumers.
The first Chapter 11 filing came not long after the company designed the suit Mr. Obama wore during his presidential inauguration in 2009.
Write to Stephanie Gleason at [email protected].
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