Bankrupt Hartmarx Corp. has hired Michael Buenzow of FTI Consulting Inc. as its chief restructuring officer, according to a regulatory filing with the Securities and Exchange Commission.
Buenzow, 44, is senior managing director and Midwest region leader of FTI’s corporate finance and restructuring practice. Hartmarx will pay $825 an hour for Buenzow’s services.
According to the employment agreement, Hartmarx has agreed to two potential contingent performance fees. One is for $900,000 if the company confirms a plan of reorganization and it determines that Buenzow and FTI were “instrumental” in the development of the plan, and the other is for $300,000 for managing the sale of the firm’s assets to liquidation buyers if Hartmarx is either unable to reorganize as a stand-alone firm or can’t sell substantially all of its assets to a strategic or financial buyer. The fees are subject to bankruptcy court approval.
Hartmarx and 50 wholly owned U.S. subsidiaries filed for Chapter 11 bankruptcy court protection on Jan. 23 in Chicago. Its overseas subsidiaries are not parties to the filing.