India's S Kumars and its American partner Emerisque have made a successful $128 million bid for Hartmarx Corporation, the maker of President Barack Obama's suits.
The sale of the debt-ridden company was approved by Judge Bruce Black in Federal bankruptcy court here and the deal is expected to close by July 7.
"We are pleased with the news. This is a terrific outcome for the workers -- all 3,000 of them," Hartmarx chairman and chief executive Homi Patel said. Black was quoted as saying to about 30 Hartmarx employees present in the court, "It sounds like you have jobs to go back to".
The purchase agreement includes both companies taking on $33.5 million of the suitmaker's debt.
Today's approval of Emerisque's bid to buy Hart Schaffner Marx and the cooperation by Wells Fargo is good news for nearly 4,000 workers, their families and our economy, Phil Hare, Democratic Congressman from Illinois, said.
Emerisque, which is a partner of Indian apparel company S Kumars, has said it intends to keep Hartmarx intact and preserve its US operations.