Workers Approve Sit-In At Hartmarx Suit Factory: Wells Fargo Bank May Shut Suitmaker Down

[Hannah Bell]

Five hunded workers at the Hartmarx suit factory in northwest suburban Des Plaines have authorized a sit-in over the threat that the company's largest creditor may shut it down.

Employees want the largest creditor for the 130-year-old Chicago area company, Wells Fargo Bank, to help it reorganize instead of shutting it down. In the event that the factory closes or is liquidated, they will not leave.

As CBS 2's Susan Carlson reports, just months ago, the company formerly known as Hart, Schaffner & Marx, which has its factory at 1680 E. Touhy Ave. in Des Plaines, was best known for making the favorite suits of President Barack Obama. But that has changed.

Wells Fargo has received $25 billion in federal bailout money, and has the option of either selling the bankrupt Hartmarx to bidders or forcing the company to shut down. If that happened, the 600 workers at the factory would lose their jobs.

http://cbs2chicago.com/linksnumbers/hartmarx.workers.sitin.2.1006811.html

[90-percent]

1. There's a term for this.....

SAVAGE CAPITALISM

-90% Jimmy

[blindpig]

2. k&r

Big stuff, if this goes forward those folks gonna need support, because you can believe that the other side is gonna play this very hard. Can't let them uppity workers think that they've got any say in the matter.

[KharmaTrain]

3. A Historic Company...Proud Workers...

Yet another company that was exploited for profits and when the economy turned south, the owners bail and let the rest hang. Hopefully Wells Fargo will negotiate a deal to keep the factory open and the workers can restore the company to health...but those who fleeced the company walk away with their profits.

It's easy to paint the bank in a bad light as they are now the owners. The workers are stuck out in the cold...literally...as the former owners defaulted on their loans that give the bank the right to liquidate and the workers have no say in the matter. The questions should be how a company that was always profitable...even in light of foreign competition...ended up in such bad shape and who was responsible.

[ProgressiveProfessor]

4. Business casual and places like Mens Wherehouse have killed the haberdashery business

and with it small suit makers. HSM makes a nice suit, at a fair price, but will have few customers in the days ahead. Its not so much capitalism but the market (low demand for business suits).

[KharmaTrain]

5. Very Good Points

The company wasn't the HSM of the 50's & 60's...but had survived, despite "volume" discounters like Men's Warehouse by filling as an alternative at competitors.

If the economy is to rebuild, companies like this must find a way...or at least let those who have worked with the product and know it give it their best shot.

Cheers...