Hartmarx granted OK to name $128.4 million offer stalking horse bid

By Caroline Salls

Pittsburgh, June 2 - Hartmarx Corp. received court approval to name Emerisque and its partner SKNL North America as the stalking horse bidder in connection with the sale of substantially all of its assets, according to an Emerisque news release.

As a result of last minute negotiations over the weekend, the buyers said they have agreed to a total transaction value of $128.4 million.

According to the release, the Emerisque-SKNL offer was the only bid that committed to keeping the business whole and operating it as a going concern.

As previously reported, competing bids are due by 5 p.m. ET on June 25.

If one or more competing bids are received, Hartmarx will hold an auction no later than July 6.

Hartmarx will pay a $1.65 million breakup fee and reimburse up to $2 million of Emerisque's related expenses if it chooses an alternative offer.

Hartmarx, a Chicago-based producer and marketer of business, casual and golf apparel, filed for bankruptcy on Jan. 23 in the U.S. Bankruptcy Court for the Northern District of Illinois. Its Chapter 11 case number is 09-02046.

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