Obama’s tailor isn’t exactly outsourced, but that title satisfied my ego. Hartmax a Chicago based tailoring company has filed for Chapter 11 bankruptcy in January 2009. Hartmax has tailored the tux, which Obama wore on the inauguration day. And Hartmax is officially the tailor of Obama.
Hartmax is in deep debt and put itself for sale. It owes Wells Fargo a lot of money. It has accepted the bid to be sold for $119 million (includes all assets). Emerisque Brands UK and SKNL North America BV. SKNL looks like a fancy acronym for yet another private equity group from America or a sovereign wealth fund from the middle-east. But it is not. It is S Kumars Nationwide Ltd an Indian company’s American edition (not sure what BV means but makes a funny sound when read aloud). SKNL’s famous brand is Reid & Taylor.
The deal, also called a “stalking horse bid”, which means an attempt by a debtor to maximize the value of its assets as part of or before a bankruptcy court-approved auction process. Hartmarx, which filed for Chapter 11 bankruptcy protection in January, could come under bankruptcy auction in June. Emerisque and SKNL have signed a breakup agreement, where Hartmarx will pay a $1.65 million break-up fee plus $2 million for expenses if it goes for a rival bid. Similarly, SKNL and Emerisque have agreed to pay $4 million termination fee if they abandon the bid. (VC Circle)
Since everything is in place and thinking that Wells Fargo just wants its money back, what would this deal mean? Does this mean that and Indian company is the holding company of a suit making company which is preferred by the US President?
I guess so. As long as the workers in the US make the suits in the US, it is not outsourcing. President Obama wouldn’t mind that. For that SKNL and co has to retain all the employees. But, from the previous owner the firm is already in trouble. A definite change in strategy and few job cuts might be coming.
What if SKNL decides to outsource the work done by some of the stuff? Would that mean Obama’s tailor is outsourced? You might wanna ponder over this while I dig through this.
PS : And you all know Obama hates outsourcing don’t you?