- Malden Mills
-
Malden Mills Industries is the original manufacturer of Polartec polar fleece and manufactures other modern textiles. The company is located in Lawrence, Massachusetts and also has operations in Hudson, New Hampshire.
Contents
Fire and rebuilding
- For more on this topic, see Aaron Feuerstein.
The Malden Mills factory burned down on December 11, 1995, CEO Aaron Feuerstein decided to continue paying the salaries of all the now-unemployed workers while the factory was being rebuilt. By going against common CEO business practices, especially at a time when most companies were downsizing and moving overseas, he achieved a small degree of fame.[1]
Bankruptcy
In November 2001, Malden Mills declared bankruptcy after the recession at the beginning of the new year left the company unable to pay creditors—related to its rebuilding and payroll commitments. The company achieved solvency because of the generosity of its creditors, as well as government subsidies. Feuerstein was relieved of actual control of the company by its creditors.
In January 2007, current CEO Michael Spillane announced that Malden Mills would file for bankruptcy again and would be sold to the Gordon Brothers Group of Boston.[2][3]
However, in February 2007, the assets of Malden Mills were purchased by a newly formed company called Polartec, LLC which is owned by Chrysalis Capital Partners of Philadelphia, Pennsylvania.[4]
A notice on the old www.MaldenMillsStore.com said the week of July 23, 2007 would be the final shipping period for rolls of fabric from the company.[5] The notice also said an employee group is starting a new fabric-making enterprise to be announced.[6]
June 28, 2007, the federal Pension Benefit Guaranty Corporation said it would take over the underfunded (by 49%) Malden Mills pension plan, which covers about 1500 employees. PBGC said the sale of Malden Mills assets meant that the pension plan would be abandoned because the company missed a $1.7 million pension payment.[7]
References
- ^ 60 Minutes: The Mensch Of Malden Mills
- ^ http://www.polartec.com/contentmgr/showdetails.php/id/1333
- ^ "Malden Mills Returns to Bankruptcy". The New York Times, January 11, 2007.
- ^ Polartec, LLC - Company Overview - Hoover's
- ^ Mill Direct Textiles
- ^ http://www.milldirecttextiles.com/default.asp
- ^ PBGC Protects Pensions at Malden Mills
External links
Categories:- Clothing companies
- Buildings and structures in Lawrence, Massachusetts
- Fires in Massachusetts
- Companies based in Massachusetts
- Burned building and structures in the United States
- United States manufacturing company stubs
Wikimedia Foundation. 2010.
