Emerisque again appears to be in the hunt for bankrupt Hartmarx Corp.
This story first appeared in the May 20, 2009 issue of WWD. Subscribe Today.
Financial sources said Tuesday the London-based firm has jumped back into the bidding for the Chicago-based apparel marketer at the debtor’s request.
Sources told WWD Emerisque late Monday submitted an updated bid, one that provides a return to creditors of 90 cents on the dollar, but also expires later today. It is a cash and note transaction that would enable Hartmarx to continue as a going concern. As in its previous bid, which Emerisque allowed to expire, there are no contingencies and no additional due diligence requirements.
The bid is said to provide a higher return than the one being cobbled together from the best of offers from both New York-based Mistral Equity Partners and Los Angeles-based Yucaipa Cos. The combined bid would have split up the firm by sending the men’s suit brands Hart Schaffner Marx and Hickey Freeman to Yucaipa and the balance of the brands, such as the women’s labels, to Mistral.
It could not be ascertained at press time whether Wells Fargo/Wachovia would sign on to the updated Emerisque bid. The bank is said to be fighting for a 100 percent recovery, sources said. A spokesman for the bank declined comment.