Hartmarx committee to file competing Chapter 11 plan

Hartmarx Corp., once a Chicago-based men's suit maker, has an extension until March 22 for the exclusive right to propose a Chapter 11 plan.

Hartmarx also has operations in Des Plaines.

Under an order signed by the bankruptcy judge last week, the creditors' committee has the right to file a competing plan if the version filed by the company isn't to the committee's liking.

The bankruptcy judge in June authorized the sale of the business to Emerisque Brands U.K. Ltd. and SKNL North America Ltd. for $119 million, including $70.5 million cash, the assumption of $33.5 million in debt, and a junior secured note for $15 million.

Hartmarx filed under Chapter 11 in January 2009, listing assets of $483 million and debt totaling $261 million as of October 2008. Debt at filing included $114 million on a revolving credit, $15.5 million in industrial revenue bonds, $12 million in mortgages, and $70 million owing to trade suppliers.

Manufacturing was performed in the company's own facilities and by contractors. The brand names included Hart Schaffner Marx and Hickey Freeman.

The case is In re XMH Corp., 09-02046, U.S. District Court, Northern District Illinois (Chicago).