Hartz may be sold

Sept. 2, 2006
By JOSEPH M. DELEON News-Post Staff
jdeleon@fredericknewspost.com

FREDERICK — Individualized Apparel Group is interested in buying Hartz & Co., Mark Falcone, president of manufacturing for IAG, said Wednesday.

The companies reached a handshake agreement Monday over the purchase of Hartz, potentially rescuing more than 230 jobs.

"We are hopeful the acquisition will take place in the very near future," Mr. Falcone said. "But, basically nothing's done until you have the keys in your hands."

IAG is a New York holding company of clothing manufacturers with combined annual sales that exceed $100 million and more than 2,600 employees, according to the company Web site.

Hartz, a men's clothing manufacturer in Frederick since 1931, planned to shut down and lay off its workforce by Oct. 13. If the gentleman's agreement is honored, Harold Bock, regional director of UNITEHERE, a union representing Hartz workers, hopes none will lose their jobs.

"I'm overly sure that the place will be bought and the jobs will be saved," he said Tuesday. "We are so confident, that employees were filling out applications for the new company."

Several Hartz workers filled out applications in the parking lot and outside lunch area of the company building Wednesday, but they declined comment.

"We asked them to take a look at this thing and make it a productive place and save the jobs for the people," he said. "At first they told us we were crazy, but I kept nagging at them and they started looking at it and decided they can make a go of it."

Heather Galbraith is a business development specialist with Frederick Department of Economic Development. She said the manufacturing industry is an important part of the economy in Frederick.

Ms. Galbraith met with IAG representatives Wednesday morning to discuss how the deal may affect Frederick.

"IAG was looking for local support, knowing we had worked with Hartz in the past," she said. "We are hopeful the deal will go through, but that remains to be seen."

Hartz filed a Worker Adjustment and Retraining Notification dated Aug. 8 with the Maryland Department of Labor, Licensing and Regulation. WARN is required to be filed with the department within 60 days of a closure or layoff that affects more than 100 people.

The notice prompted Patrick Baker of the Department of Labor to file a Trade Act Petition with the U.S. Department of Labor, a standard practice when manufacturing companies shut down.

The petition calls for state funds to help Hartz workers under the Trade Adjustment Assistance program, Mr. Baker said. The program helps people who become unemployed because of an increase in imports from foreign countries or if their jobs have been moved overseas .

Displaced Hartz workers could be eligible for income support, relocation allowances, job search allowances, occupational training and a health coverage tax credit.

Mr. Baker said pending funds to help employees of Hartz under the program could be affected by the purchase.

The final terms, such as if employees transfer with the sale, will affect how the agency helps workers, Mr. Baker said. Sometimes a business will layoff workers, who are then hired by the new company.

"But that doesn't mean everyone is picked up," he said. "Sometimes not everyone is offered employment."