Emerisque Brands U.K. Ltd and SKNL North America, BV are today in a race against time, trying to close their purchase of bankrupt Hartmarx Corp by the end of the business day.
The two have been hit by snags involving issues concerning demands from Hartmarx and the professionals in the case that the buyers be responsible for unexpected, non-contracted for administrative claims, according to court records. The disputes deal with whether those claims should be paid by the purchaser or are really the responsibility of "Oldco," as the Hartmarx estate is sometimes referred to during the winding down process.
The latest bone of contention Friday morning has to do with recently discovered financial irregularities at Hartmarx in the last few weeks.
Emerisque and SKNL even went to court late Thursday with an emergency request for the Chicago bankruptcy court overseeing Hartmarx to rule on the parties’ respective rights under the purchase agreement.
The court declined, according to sources at the hearing, because the issues seemed to concern negotiations between parties.
Sources also said Emerisque and SKNL have been trying to close the deal as soon as possible to avoid losses to the value of the Hartmarx assets as well as keep workers employed.
Now the fear is if the transaction can't be completed, there will need to be a liquidation of the firm.
In what may be the final straw to break the deal, sources said that Emerisque and SKNL in recent days have uncovered additional irregularities in Hartmarx's cash accounts, which have required the purchasers to provide additional guarantees to lenders to maintain funding in order to keep the Hartmarx operations going. However, due to the possible impact those irregularities have on operations, there's a chance job cuts will have to be deeper than initially expected. That's because there'll be little or no money left from Oldco to fund its obligations including payroll and benefits to employees of the new company that's set up should the transaction get done today.
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye