The judge presiding over Hartmarx’s bankruptcy proceedings has denied Burberry’s request to terminate its tailored clothing license with the troubled company, effectively ensuring the partnership through 2010.
Burberry Limited filed a motion with the U.S. Bankruptcy Court for the Northern District of Illinois two weeks ago seeking to end the 12-year partnership. The company argued in the filing that because Hartmarx might be sold, Burberry has the right to terminate the license now in order to line up a new manufacturer.
But according to a lawyer present at Tuesday’s hearing, the judge said Burberry’s request was “premature” and rejected the motion.
The relationship with Hickey Freeman, the Hartmarx-owned brand that produces Burberry’s tailored clothing at its Rochester, N.Y., facility has long been lucrative. According to court documents, the license has generated more than $20 million a year in revenues since 2004, more than a quarter of which have come from orders placed by Burberry.