“The substantial decline in discretionary apparel purchases by consumers and by the company’s retail customers, particularly at the luxury price points, coupled with a significant contraction in borrowing capacity under the company’s senior credit facility.”
This was the statement released by Hartmax Corp. the parent company of luxury apparel brands such as Hickey Freeman and Hart Schaffner Marx, the label that designed President Obama’s Inauguration Day tux. The company is feeling the pinch of the economic crisis and filed for Chapter 11 bankruptcy on Friday.
So many people are pinching pennies and tightening their wallets, event the upper class, many of whom have lost a significant amount of money due to the weakened economy. I can see why they wouldn’t be buying $2000 suits – all dressed up with no where to go. Who will keep these hot lads looking good? Good thing that those that are truly rich and in the upper crust are still spending on luxury items to keep many of these brands afloat.