Potential buyer eyes Hathaway factory Developer moved by jobs going overseas

WATERVILLE – An Arizona developer who wants to buy the shuttered Hathaway shirt plant on the Kennebec River was disappointed and motivated when the factory closed and the jobs moved overseas, his lawyer said.

Michael J. Peloquin’s offer of $1.3 million for the plant that ceased production last month marks a departure for the developer. His past projects in the Southwest have involved residential developments and office buildings.

But Peloquin underwent a change after the terrorist attacks on Sept. 11, 2001, that may have induced him to try to buy the old factory, said John Marcolini, a Phoenix-based lawyer representing Peloquin in the factory deal.

“I think that a large part of this is in fact motivated by the loss of jobs – of jobs going overseas – and his view that this country has become a target,” he said. “He is very displeased with the fact that the last major shirt maker in the United States had to close down operations in the United States.”

City Solicitor William Lee, who is investigating Peloquin’s offer for the City Council, said Peloquin has retained Portland attorney Harold Pachios to represent him in the negotiations.

Lee said he expects Pachios to contact him with a formal offer soon. “It’s been outlined in general terms but I will be expecting a proposed purchase and sale agreement,” Lee said.

Peloquin’s plans have aroused wide interest and hope in the Waterville area.

Donald Sappington, chief executive officer for Hathaway, who is overseeing the dismantling of the shirt company’s operation at the idled factory on Water Street, is among the hopeful. Sappington, who has spoken to Peloquin, said the businessman wants to set up a new shirtmaking operation in the factory and rehire as many former Hathaway workers for the job as possible.

He agreed with Marcolini that the developer is tired of seeing American manufacturing jobs evaporate due to overseas competition. “It’s from his heart,” Sappington said of Peloquin’s motives.

Peloquin, acting through a firm called Atlantic Partners, plans to buy the factory’s equipment from Windsong Allegiance Group.

Windsong is convinced Peloquin’s offer is genuine and that he has the finances to carry out his plans, said spokeswoman, Collette Sipperly.

“He doesn’t really get involved in anything that he does not believe in and he does not intend to make a success. The quality of whatever he associates his name with is very important to him,” Marcolini said.

But any deal could become complicated because of a lawsuit filed by the Made in the USA Foundation, which tried unsuccessfully to broker a deal to keep the plant running before it closed on Oct. 18.