Malden Mills

From Wikipedia, the free 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.

[edit] Fire and rebuilding

For more on this topic, see Aaron Feuerstein.

The Malden Mills factory burnt down on December 11th 1995, CEO Aaron Feuerstein decided to not only to use his insurance money to rebuild the factory, but to also pay the salaries of all the now-unemployed workers while it 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 November of 2001 Malden Mills declared bankruptcy after the early century recession left the company unable to pay creditors related to its rebuilding and payroll commitments. The company achieved solvency due to the generousity of its creditors and government subsidies. Feuerstein was relieved of actual control of the company by its creditors.

However, in January 2007, current CEO Michael Spillane announced that Malden Mills would file for bankruptcy again, and will be sold to the Gordon Brothers Group of Boston. [1]