Harts Schaffner Marx on the ropes...

Collarchat.com

Home Login Search

Harts Schaffner Marx on the ropes...

View related threads: (in this forum | in all forums)

Logged in as: Guest

All Forums >> [Community Discussions] >> Dungeon of Political and Religious Discussion >> Harts Schaffner Marx on the ropes...

Page: [1]

Message

<< Older Topic Newer Topic >>

Harts Schaffner Marx on the ropes... - 5/14/2009 6:31:12 AM

samboct

Posts: 1817
Joined: 1/17/2007
Status: offline

One of the few remaining garment manufacturers in the US, Harts Schaffner and Marx (who also makes Hickey Freeman) is in deep trouble according to an article in the NY Times. For those who don't know their stuff, much of their sales were to Wall St. Execs- some of whom clearly are scrimping these days. Obama's suits are made in their plants- heck, I even have an HSM suit and a pair of Hickey Freeman pants. Essentially their business has fallen off by 40% since the start of the year. Like many businesses, they rely on banks to provide loans to purchase raw materials and the problem they've got is that their bank is Wells Fargo. Wells Fargo is saying that they plan on selling off HSM to the entity with the highest bid- since that's what makes sense to their shareholders, i.e. Wells Fargo should be as profitable as possible. Except that if HSM gets sold to an overseas investor, they're probably going to take the brand and shutter the US plant, where IIRC, there are some 3,600 workers making around $12/hr. Anybody gonna say these people are overpaid?

Here's my outrage on this one... As taxpayers, we've fronted Wells Fargo a chunk of money to stay in business. Wells Fargo's move is shortsighted at best- without manufacturers like HSM, this country has nothing and besides, HSM's workers are helping to pay the taxes which bailed out Wells Fargo. There is just something terribly ironic here and I think it illustrates the problem in our banking system. We don't need to bail out banks which make money for wealthy investors by shopping US companies overseas- we need banks which support US businesses. In the long term, I'll bet HSM's business comes back- well cut and manufactured clothing is like cars- sooner or later, you're going to need it, even if in the short term, you can make do. It seems to me that banks which needed the bail out money are too focused on short term returns, and have ignored longer term issues- and they haven't fundamentally changed, even with all the bail out money they've been showered with.

Sam

Profile

Post #: 1

RE: Harts Schaffner Marx on the ropes... - 5/16/2009 10:18:00 AM

popeye1250

Posts: 18104
Joined: 1/27/2006
From: New Hampshire
Status: offline

Sambo, $12 an hour is what highschool kids make working after school.
You'd figure that the people in charge of businesses would put 2 and 2 together and realize that laying off people isn't good for business as those people stop buying the products and services that business sells.
As for banks and insurance cos. they shouldn't be getting any money from Taxpayers, let them go out of business, others will replace them.
We shouldn't be subsidising the *least efficient* of businesses. That's why we have Bankruptcy Laws.
I agree with you on Wells Fargo.
We shouldn't be helping to keep wealthy people wealthy which is exactly what is happening.

_____________________________

"But Your Honor, this is not a Jury of my Peers, these people are all decent, honest, law-abiding citizens!"

(in reply to samboct)

Profile

Post #: 2

RE: Harts Schaffner Marx on the ropes... - 5/16/2009 12:22:40 PM

Vendaval

Posts: 10297
Joined: 1/15/2005
Status: offline

samboct,

I agree with your outrage and a wage of $12 per hour is not being overpaid.

_____________________________

"Beware, the woods at night, beware the lunar light.
So in this gray haze we'll be meating again, and on that
great day, I will tease you all the same."
"WOLF MOON", OCTOBER RUST, TYPE O NEGATIVE

http://KinkMeet.co.uk

(in reply to samboct)

Profile

Post #: 3