Under the terms of the acquisition, which is still subject to Bankruptcy Court approval and a competitive auction process expected to be completed by year-end, ABG will license HMX’s brands to a new entity that will be led by existing ABG management. That new licensee will also acquire HMX’s manufacturing operations, real estate, accounts receivable and inventory, with ABG gaining 100 percent ownership of all IP.
“We are excited that ABG can provide a solution to HMX that will allow its historical American brands to flourish,” says Jamie Salter, chief executive officer, ABG.
HMX’s Hart Schaffner Marx and Hickey Freeman brands recently made headlines when President Barack Obama and Governor Mitt Romney wore the American-made brands (respectively) during the Presidential debate.
“The HMX brands greatly compliment ABG’s existing properties, and we are confident that we can introduce the HMX brands into new markets worldwide through key strategic partnerships,” says Nick Woodhouse, chief marketing officer, ABG.