Polartec
Encyclopedia
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
.
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.
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.
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.
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. The notice also said an employee group is starting a new fabric-making enterprise to be announced.
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.
Polar fleece
Polar fleece, usually referred to simply as "fleece," is a soft napped insulating synthetic fabric made from Polyethylene terephthalate or other synthetic fibers. One of the first forms was Polar Fleece created in 1979 by Malden Mills, now Polartec LLC., a new, light and strong pile fabric meant...
and manufactures other modern textiles. The company is located in Lawrence, Massachusetts
Lawrence, Massachusetts
Lawrence is a city in Essex County, Massachusetts, United States on the Merrimack River. According to the 2010 U.S. Census, the city had a total population of 76,377. Surrounding communities include Methuen to the north, Andover to the southwest, and North Andover to the southeast. It and Salem are...
and also has operations in Hudson, New Hampshire
Hudson, New Hampshire
Hudson is a town in Hillsborough County, New Hampshire, United States. The population was 24,467 at the 2010 census.The primary settlement in town, where 7,336 people resided at the 2010 census, is defined as the Hudson census-designated place and is located at the junctions of New Hampshire...
.
Fire and rebuilding
- For more on this topic, see Aaron FeuersteinAaron FeuersteinAaron Feuerstein was the third-generation owner and CEO of Malden Mills in Lawrence, Massachusetts.When the Malden Mills factory burnt down on December 11, 1995, Feuerstein decided not only to use his insurance money to rebuild it, but to also pay the salaries of all the now-unemployed workers...
.
The Malden Mills factory burned down on December 11, 1995, CEO Aaron Feuerstein
Aaron Feuerstein
Aaron Feuerstein was the third-generation owner and CEO of Malden Mills in Lawrence, Massachusetts.When the Malden Mills factory burnt down on December 11, 1995, Feuerstein decided not only to use his insurance money to rebuild it, but to also pay the salaries of all the now-unemployed workers...
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.
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
Gordon Brothers Group
Gordon Brothers Group, headquartered in Boston, Massachusetts, is a liquidation firm that was founded in 1903 by Jacob Bernard, Louis and Joseph Gordon....
of Boston.
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.
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. The notice also said an employee group is starting a new fabric-making enterprise to be announced.
June 28, 2007, the federal Pension Benefit Guaranty Corporation
Pension Benefit Guaranty Corporation
The Pension Benefit Guaranty Corporation is an independent agency of the United States government that was created by the Employee Retirement Income Security Act of 1974 to encourage the continuation and maintenance of voluntary private defined benefit pension plans, provide timely and...
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.