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The auction for the assets of bankrupt Hartmarx Corp. is expected to stretch into a second day today with the possibility of the small Christopher Blue division being sold separately to one of the bidders, sources familiar with the process said.
Christopher Blue represents Hartmarx’s denim business and sources believe it could be sold to Western Glove Works, based in Winnipeg, Manitoba. The Canadian firm no longer manufactures Victoria Beckham’s dVb line, but has licensed its Jag line to Christopher Blue for six years. Sources pegged the value of the Christopher Blue business at between $4.5 million and $6 million.
If such a deal were to be struck, the result could be a reduction of the $128.4 million Hartmarx stalking horse bid from London-based Emerisque and its investment partner, SKNL. Additionally, Mistral Capital Management, originally interested in Christopher Blue, Monarchy and Exclusively Misook, would have to adjust its bid to go after Monarchy and Misook.
Sources also said that bidding for Hartmarx’s two flagship men’s brands, Hart Schaffner Marx and Hickey Freeman, was heating up between Emerisque and a group led by designer Joseph Abboud.