WATERVILLE – A lawsuit arising from last year’s collapse of the 165-year-old shirtmaker C.F. Hathaway may be headed for trial.

Joel Joseph of the Made in the USA Foundation said he understands that his case against Windsong Allegiance Apparel will go to trial in December in U.S. District Court in Bangor unless a settlement is reached.

“They’re talking to us, and there have been offers and counteroffers,” Joseph said. “If it goes to trial, we think the jury will be sympathetic to us.”

A Windsong spokesman could not be reached for comment.

The lawsuit is an outgrowth of the foundation’s attempt to line up private investors to buy Hathaway from Windsong and continue making shirts in Waterville.

Windsong originally offered to donate equipment in the Water Street factory to anyone who could come up with financing to continue operations there but has maintained Joseph’s effort never did that.

Joseph claims Windsong breached a deal reached with him for the equipment. He said he is seeking either the equipment or unspecified monetary compensation for the value of that machinery.

“We would still be interested in the equipment if the city is interested in working with us to start up the plant again,” Joseph said. “We’re not going to open the plant if the city’s not interested, because they own the building.”

Since the factory closed last October, Waterville has worked to market the city-owned building for other uses.

Windsong still owns the Hathaway label and continues to license overseas companies to manufacture apparel bearing the famous brand name. The company blamed overseas competition for its decision to close the factory in Waterville.

That closing ended Hathaway’s century and a half in the city and left more than 200 workers unemployed. Joseph’s lawsuit surfaced about a month after the shutdown.