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HARTMARX TO SELL PRINCIPAL SPECIALTY STORE COMPANY; REPRESENTS STRATEGIC STEP TO REPOSITION COMPANY MANUFACTURING AND WHOLESALE BUSINESSES

HARTMARX TO SELL PRINCIPAL SPECIALTY STORE COMPANY; REPRESENTS STRATEGIC STEP TO REPOSITION COMPANY MANUFACTURING AND WHOLESALE BUSINESSES
 CHICAGO, Sept. 18 /PRNewswire/ -- Consistent with its previously announced program to restructure around its manufacturing and wholesale businesses, Hartmarx Corp.(NYSE: HMX) today announced the sale of its principal retail unit, Hartmarx Specialty Stores, Inc., to HSSA Group, Ltd., a company affiliated with Maurice L. Rothschild & Co., of Chicago.
 HSSA Group, Ltd. has indicated that it intends to operate approximately one-third of the stores it is acquiring on a continuing business-as-usual basis and that the remaining two-thirds will be closed, either immediately or after holding going-out-of-business sales. According to the agreement between the companies, the remaining store group will continue as major customers of Hartmarx Corp.'s Men's Apparel Group (MAG). Maurice L. Rothschild & Co. will provide credit support on an ongoing basis to the acquired retail operations.
 Regional store chains comprising Hartmarx Specialty Stores, Inc. include, among others, Baskin in Illinois, Hastings in San Francisco, Jas. K. Wilson and Leopold Price & Rolle in Texas, Wallachs in New York and New Jersey, Raleighs in Washington, D.C., and Zachry in Florida, Georgia and other states. Kuppenheimer and Barrie Pace Catalogue are not involved in this transaction.
 Elbert O. Hand, Hartmarx chairman and chief executive officer, said: "This transaction facilitates the strategic repositioning of the company around its very successful and profitable manufacturing and wholesale businesses, including, in particular, the Men's Apparel Group. In 1991, the company's men's manufacturing businesses had earnings before interest and taxes exceeding $40 million, and earnings through July 1992 were ahead of those for the comparable 1991 period. The sale announced today allows us to focus our resources on the growth of these businesses, which we believe have excellent long-term potential, particularly the men's and women's tailored and sportswear categories."
 Hartmarx Corp. is the nation's leading manufacturer and wholesaler of men's and women's apparel. The company's businesses include Hart Schaffner & Marx, Intercontinental Branded Apparel, Hickey-Freeman, International Women's Apparel, Trans-Apparel Group (formerly Jaymar- Ruby), Biltwell Company, Universal Design Group, Henry Grethel Apparel, Kuppenheimer, Barrie Pace Catalogue, and the Special Markets Group, composed of Fashionaire Apparel and Thorngate Uniforms.
 -0- 9/18/92
 /CONTACT: Frank Brenner of Hartmarx, 312-372-6300/
 (HMX) CO: Hartmarx Corp. ST: Illinois IN: REA TEX SU:


AH -- NY057 -- 1176 09/18/92 13:50 EDT
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Publication:PR Newswire
Date:Sep 18, 1992
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