News release of Hathaway sale premature

WATERVILLE – The news that a buyer has been found for C.F. Hathaway shirt company in Waterville was released prematurely Wednesday, according to company employees. It is now unclear if the sale will proceed or not.

Trying to save the deal and keep negotiations going, most company officials were in daylong meetings Wednesday and could not be reached for comment.

“That the news was released prematurely has done substantial damage,” said Helen King Atallah, director of human resources at Hathaway.

Maine news outlets received notification late Tuesday afternoon that a press conference was scheduled for 11 a.m. Thursday, June 27, at the company’s Water Street location. The information contained in the notice was embargoed until that time.

The Bangor Daily News honored that embargo.

Several news organizations, however, chose to ignore it and released a story about the pending sale. The ensuing confusion upset employees and caused the press conference and sale announcement to be postponed.

No reason for the postponement was provided and, according to Jennifer Carlson of Nancy Marshall Communications, no date has been set for the announcement. “It will eventually be held,” she said.

According to the advisory, The Made in the USA Foundation has plans to purchase the C.F. Hathaway Co. from Windsong Alliance Group and create a new corporation, Waterville Shirt Co. The Made in the USA Foundation is a nonprofit organization dedicated to promoting American products.

The foundation intends to purchase the company with assistance from other public and private investors, keeping the plant open indefinitely and securing employment for every person currently working at the plant.

Hathaway announced in March that it would close the Waterville plant, which has been in business since 1837, but additional orders were obtained from Wal-Mart and Dillard’s Department Stores that would have kept the plant open through the summer.

Sen. Olympia J. Snowe released a statement Wednesday saying she was encouraged by the report that a sale could be imminent.

“The purchase of Hathaway by The Made in the USA Foundation would be very good news, helping preserve jobs of the dedicated workers at this proud Maine company, and keeping open the doors of America’s last remaining domestic shirt maker,” she said.

“While I understand Hathaway remains in negotiation with The Made in the USA Foundation, I am very encouraged by the prospects of a sale,” said Snowe.

“In the meantime, I will continue to pursue every avenue to keep business coming to Hathaway, encouraging retailers and the military to do business with this high-quality American company.”

Maine’s congressional delegation received a staff briefing Tuesday from the Defense Logistics Agency for review of contract bids for the U.S. Air Force dress shirt contract, a contract valued at $18 million to $20 million.

In a joint statement, Snowe and U.S. Reps. John Baldacci and Tom Allen said the briefing was held to provide them with a full understanding of the process. A decision on the contract can be expected by late August.

The DLA currently is reviewing proposals for production of long-sleeve dress shirts. The five-year contract would be for up to 386,000 shirts in its first year, with options for up to 255,000 shirts in four successive years.