Schakowsky Urges Wells Fargo CEO To Keep HartMarx Running

Progress Illinois reports:

As we recounted yesterday, the 120-year-old suitmaker is currently in Chapter 11 bankruptcy and has attracted three potential bidders — two of which want to revitalize the company and another that reportedly favors liquidation. Recent reports indicated that Wells Fargo, which provided a “debtor in possession” loan to keep operations afloat during the restructuring, has been leaning towards the idea of liquidation, which would provide a quick return but result in the loss of over 3,000 jobs nationwide. The bank — which accepted $25 billion in federal bailout funds and reported a first quarter return — will likely select a “stalking horse” bidder this week.

The union that represents HartMarx’s 1,000 Illinois employees, Workers United, has been ramping up efforts to save the company. Helping out has been Rep. Phil Hare, who worked at HartMarx’s Rock Island factory for 13 years before entering politics. Today, Rep. Jan Schakowsky leant a hand as well.

In an interview moments ago, the Illinois congresswoman told us she spoke with Wells Fargo CEO John Stumpf this afternoon. “I made it clear that I had thought, even without the $25 billion they got in TARP funds, we wanted him to take into consideration that jobs would be lost and to accept a bid that would actually keep Hartmarx open,” she said. Stumpf apparently told Schakowsky that he has an obligation to his shareholders. Her response: “I reminded him that taxpayers, including people who work at Hartmarx, have a stake in this too and are helping to bail out the company.”

Great moments in TARP!