The U.S. Bankruptcy Court for the Northern District of Illinois has accepted a request by the venerable American sportswear group to be placed under Chapter 11 bankruptcy protection from its creditors. The company is particularly well known in the golf apparel sector as the holder of the Jack Nicklaus and Bobby Jones trademark rights and as the U.S. licensee of Lyle & Scott.
The management of the Bobby Jones Lifestyle division of Woodford, a British company that took over the European license for Bobby Jones from Harris Watson one year ago, said the bankruptcy proceedings should not disrupt shipments to European customers of the collection. Spring sales of the European collection are up by 40 percent.
The English company says it was recently awarded licenses for special St. Andrews and Ryder Cup Celtic Manor collections. It is looking for new sales agents in Italy, Turkey and the Scandinavian countries. However, Dennis Otter, who reorganized the distribution in the Iberian Peninsula and in France (more on this in our special golf apparel and footwear report coming out next week), has left the company and has not been replaced.
Hartmarx took the limelight a few days ago as the Chicago-based company that made the cold-proof suit worn by President Barack Obama for his inauguration. The company is blaming the poor U.S. market situation for its current financial problems. It has hired Moelis & Company as financial advisers to seek new investors or an outright buyer.
