Archive for August, 2009
Failure of Phil
Market mechanisms had failed.
Hartmarx Clothing Co. was in dire financial straights, the jobs of hundreds was on the cutting block. Congressman Phil Hare wanted to save his old job and make his new one seem useful. This could be that one time where economic optimism was given back to a stagnating community. In that familiar place, just down the street from the abandoned Case plant, this was Phil’s chance. Here was his old job at stake–he knows at least 434 friends in Washington who are in the suit market. Even the President buys Hartmarx suits. All balance sheets aside, they deserve their jobs, right?
Hare was going to save a failing company with a personal photographer and a press release. Those 350 Rock Island employees would have job security for “another 120 years.” How? Force Wells Fargo to stabilize. Inject credit that only exists on paper. Ignore operating costs.
Reality hit. Profit and loss still exists. Swapping debt like a hot potato merely changes the name on the Chapter 11 papers.
“The millions of dollars in additional costs due to this proved too great to allow a deal to go forward that would keep the company intact,” Hare said. “Unfortunately, the Seaford plant and its workers are the victims of this gross mismanagement.”
It was only after the fact that this Congressman realized it takes more than an op-ed to save a failing company.
——
Illinois for Growth: Phil Hare’s Mission Accomplished
QCExaminer on Local Blog Reactions
The Scoundrel: Phil Hare Strikes Out
Quote of the Day
“The question isn’t who is going to let me; it’s who is going to stop me.” ~ Ayn Rand