The tough economy has really hit home with President Barack Obama — literally affecting the clothes on his back.
Late Friday, the President’s favorite tailor, and one of the oldest and best-known names in men’s wear, Hartmarx Corp., filed a voluntary petition for Chapter 11 bankruptcy court protection.
Founded in 1872, the apparel firm and 50 affiliates filed in a Chicago bankruptcy court. The Chicago-based firm, whose Hart Schaffner Marx clothing label was President Obama’s brand of choice for his inauguration and campaign, has secured a $160 million debtor-in-possession credit facility from its pre-petition lenders, which include Wachovia Capital Finance Corp.
The company’s Canadian affiliate and other non-U.S. holdings have not sought bankruptcy protection.
Hartmarx said on Friday that it will continue to operate its business as management focuses on developing a restructuring plan, which “may include the sale of substantially all of its assets.”
“We believe that today’s filing and our DIP financing provide us with sufficient funding and allows us to operate our business currently as we pursue strategic alternatives,” said Homi Patel, chairman and chief executive officer, on Friday.
The Chapter 11 petition lists between 5,000 to 10,000 creditors, and assets and liabilities each at between $100 million and $500 million.
The top unsecured trade creditor is Wooyang Co., New York, at $2.8 million. Other unsecured creditors include U.S. Customs, owed $518,730 for duties; Amalgamated Cotton Garment & Allied Industrial Fund, New York, owed $341,736 for employee benefits; Perry Ellis International, Miami, owed $312,500 for royalties, and Nicklaus Marketing Inc., Miami, owed $300,000 for royalties.
Glenn Morgan, chief financial officer, said in a court affidavit that 75 percent of the company’s revenue is from its men’s apparel business, and 25 percent from women’s apparel. He said that two of its largest customers are Dillard’s Department Stores and Nordstrom’s, representing 22 percent and 13 percent of sales, respectively.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast