SALE OF RETAIL UNIT COULD AID THORNGATE

The recent sale of the principal retail unit of Hartmarx Corp. Hartmarx Specialty Stores Inc. to HSSA Group Ltd., a company affiliated with Maurice L. Rothschild & Co. of Chicago, could have far-reaching effects on the Thorngate Ltd. operations in Cape Girardeau and Chaffee.

"These effects should all be positive," said Carey Stein, an executive with Hartmarx. "This sale will probably help the manufacturing operations and could eventually increase the work force."

Stein explained that HSSA was obligated to purchase large quantities of merchandise from Hartmarx Corp. manufacturers.

"I certainly can't see any adverse effects for the two Thorngate Ltd. operations in your area," Stein said late Tuesday.

The Southeast Missourian was referred to Stein and the Chicago headquarters of Hartmarx by local Thorngate Ltd. officials.

Hartmarx is the nation's leading manufacturer and wholesaler of men's and women's apparel. Thorngate Ltd., one of the manufacturing arms of Hartmarx, employs more than 650 people in its Cape Girardeau operation and about 300 in Chaffee.

HSSA Group Ltd. has indicated that it intends to close about two-thirds of the Hartmarx Specialty Stores, either immediately or after holding going-out-of-business sales.

HSSA intends to operate the remaining third of the stores on a continuing, business-as-usual basis, and will continue as major customers of Hartmarx Corp.'s Men's Apparel Group.

The Thorngate operations in the area produce men's apparel. The Cape Girardeau plant makes men's suits and the Chaffee operation produces men's trousers.

Maurice L. Rothschild & Co. will provide credit support on an ongoing basis to the acquired retail operations.

Store chains comprising Hartmarx Specialty Stores include, among others, Baskin in Illinois, Hastings in San Francisco, James 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 the transaction.

"This transaction facilitates the strategic repositioning of the company around its very successful and profitable manufacturing and wholesale business, including in particular the men's apparel group," said Elbert O. Hand, Hartmarx chairman and chief executive officer.

Hand said that in 1991 the company's men's manufacturing businesses had earnings before interest and taxes exceeding $40 million and earnings through July were ahead of those for the same period a year ago.

"The sale announced here last weekend 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," he said.

Hartmarx businesses include Hart Schaffner & Marx, Intercontinental Branded Apparel, Hickey-Freeman, International Women's Apparel, Trans-Apparel Group, Biltwell Co., Universal Design Group, Henry Grethel Apparel, Kuppenheimer, Barrie Pace Catalogue and the Special Markets Group composed of Fashionaire Apparel and Thorngate Uniforms.