HMX Files for Chapter 11 for Second Time
HMX, parent company of Hickey Freeman suits, has filed for bankruptcy. This is the second time the New York based company has filed for Chapter 11, the first time being in 2009.
Hickey Freeman suits have many fans, including President Obama. Despite this, HMX gave no reason for it's recent filing. Insiders said the India-based firm, SKNL, that had saved it three years earlier, refused to pump more cash into HMX not long after buying it.
HMX also owns Hart Schaffner Marx, which agreed to be acquired by Authentic Brands Group. An insider said Authentic Brands plans to partner with a company that will keep it's Rochester, NY factory open. However, HMX warned employess at the factory and in Manhattan offices that most jobs will be cut.
The bankruptcy is a huge embarrassment to Sen. Chuck Schumer, who in August brokered a deal for emergency financing - intended to safeguard jobs "for years to come." Yesterday, Schumer blasted HMX, saying the company had not "lived up to its commitments."