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Don Sappington, former CEO of Maine’s Bass Shoe Company, was handpicked to run the Hathaway Shirt Company after its Park Avenue owner, Linda Wachner, CEO of Warnaco, decided to close the plant. After workers protested the shutdown, former Maine Governor Jock McKernon put together a group of investors to buy Hathaway from Wachner, and then hired Sappington as CEO. Hathaway was a Maine tradition. The factory had operated in Waterville for 160 years. But with low-cost foreign imports hurting the domestic garment industry in the 1990s, Linda Wachner turned to cutting costs sharply, which also hurt shirt quality. When Wachner’s strategy failed, she decided to abandon the plant. But the people of Maine rallied to save this proud Maine institution, raising the investment money and the backing of federal, state, and local governments. Sappington decided to restore traditional Hathaway quality, convinced that appealing to the high end of the market would make Hathaway profitable again. (30 minutes)



 
    

Item#: This title is currently not available.
Copyright date: ©1998



Part of the Series : Managing Corporate Change
     


Only available in the US, Canada, Singapore, Taiwan, South Korea and Japan.




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