S Kumars Nationwide Limited (SKNL), had recently announced that its wholly owned subsidiary, SKNL North America BV along with its operating partner have successfully bid for the acquisition of Hartmarx Corporation. The United States Bankruptcy Court for the Northern District of Illinois on June 26 approved the sale of substantially all of the assets of Hartmarx Corporation for a total transaction value of approximately USD 119 million. The transaction is expected to close during July 2009.
Once the transfer of assets is complete, SKNL and its operating partner will revitalize the brands that comprise the Hartmarx portfolio. Commenting on the acquisition, Nitin S Kasliwal, managing director and vice chairman of SKNL said, “In line with our strategy, this acquisition will enable SKNL to significantly enhance its global footprint. Hartmarx directly owns or controls 34 brands and that making us very excited about opportunities that lie ahead.” The acquisition will enable SKNL Group establish a substantial footprint in the global arena and also bring significant business volumes to the SKNL Group operations in India through a ‘front-end back-end synergy’ strategy, added Kasliwal.
Further, according to him, the group is continuously searching for alliances and acquisitions that fit in with its growth strategy and thereby creating value for its shareholders.
On January 23, 2009, Hartmarx, one of the last remaining American clothing manufacturers announced that 50 of its wholly-owned U.S. subsidiaries had filed for protection under Chapter 11 of the United States Bankruptcy Code.
Hartmarx produces and markets business, casual and golf apparel under its own brands, including Hickey Freeman, Hart Schaffner Marx, Coppley, Monarchy, and Exclusively Misook. In addition, Hartmarx has certain exclusive rights under licensing agreements to manufacture and market selected products for premier brands such as Austin Reed, Ted Baker, Bobby Jones, Jack Nicklaus, Claiborne, Pierre Cardin, Lyle & Scott, Golden Bear and JAG Jeans. Hartmarx’s broad distribution channel includes all of the leading US department stores, fine specialty stores and value oriented retailers.
— Nivedita Jayaram Pawar, Mumbai Bureau