Hardwick Clothes, Inc. filed a voluntary bankruptcy petition for Chapter 11 reorganization on Monday. The primary cause of the filing was the unexpected action of the Pension Benefit Guaranty Corporation in demanding immediate payment of liabilities related to Hardwick’s terminated pension plan and PBGC’s threat to file a tax lien on Hardwick’s assets if immediate payment is not made.
Hardwick is filing Chapter 11 to protect its assets and 225 employees, and expects to continue business in the ordinary course during the bankruptcy proceedings. Hardwick feels confident it will emerge from Chapter 11 with a financially solid, ongoing business, officials said.
Hardwick Clothes is a 133-year-old tailored clothing manufacturer located in Cleveland. The company was founded in 1880 and continues to produce all of their clothing in their Cleveland facility.