California Apparel News

Hartmarx, the Chicago-based suit maker and owner of the Monarchy and One Girl Whohellip; Los Angeles labels, struck a “stalking horse” asset purchase agreement with Emerisque Brands U.K. Limited and SKNL North America, B.V. for “substantially all” assets of Hartmarx. The deal, which is subject to court approval, calls for an expedited sale process in which Emerisque purchases nearly all of Hartmarx’s assets for $70.5 million in cash and a junior secured note with a face value of $15 million. The buyer will also assume certain Hartmarx liabilities, estimated at about $33.5 million, according to the company. Hartmarx filed for Chapter 11 bankruptcy protection in January. (In a bankruptcy sale, a stalking-horse bidder is given an incentive to set a minimum price for the assets in the sale, thus taking a risk that the company’s assets will be sold at a lower price at auction.) “This is a key step in a process designed to enhance the value of the Hartmarx estates,” said Michael Buenzow, senior managing director at FTI Consulting Inc. and Hartmarx’s chief restructuring officer, in a statement. “Hartmarx and its advisers will continue to work with all potential bidders to maximize value for the benefit of all stakeholders.”