Delegates Won’t Give Up On Hathaway

in Crystal Bozek, Fall 2002 Newswire, Maine
September 12th, 2002

By Crystal Bozek

WASHINGTON, Sept. 12, 2002–A potential contract between the C.F. Hathaway Co. in Waterville and the Air Force has fallen through, leaving Maine’s congressional delegation looking for ways to keep the shirt company from closing in late September.

The $5 million contract was considered crucial to keeping the company afloat and keeping 300 jobs in Maine. Now, with an uncertain future, the company is still in the running for a Navy contract of 26,000 shirts a year– a far cry from the 386,000 shirts the Air Force deal would have brought.

Sen. Olympia Snowe, R-Maine, spoke Thursday morning with Vice Admiral Keith W. Lippert, director of the Defense Logistics Agency, to express her concern about the basis for the decision, which awarded the contract to a small Kentucky company, Ashland Sales and Service Company.

“I told Admiral Lippert I am deeply dismayed and disappointed by this decision, particularly in light of the repeated delays and ensuing confusion in this process,” said Snowe in a statement Thursday. “I continue to believe that Hathaway had a strong bid that could have offered the best value to taxpayers.”

Snowe, along with Sen. Susan Collins, R-Maine, stands ready to support Hathaway should it decide to appeal. Collins said she would work to reverse the decision.

“This is a very disappointing outcome, especially following so many delays in the process,” Collins said in a statement Thursday. “I will work closely…to try to reverse this unfortunate result.”

Rep. John E. Baldacci, D-District 2, said he was disappointed the company wasn’t selected, but expressed hope Hathaway could win future contracts. “They need to get the latest in technology upgrades and invest in the people and equipment, so they will be able to compete,” Baldacci said in an interview Thursday.

Baldacci said he recently visited the Biddeford Textile plant, which manufactures electric blankets. He said he sees Hathaway prospering with a similar strategy.

Rep. Tom Allen, D-District 1, said he is optimistic that Hathaway will not fold.

“I do not think it will fold if it’s purchased by the Made in the USA Foundation. I don’t think [the Air Force contract] was essential to the deal,” Allen said in an interview +Thursday.

The Made in the USA Foundation, a nonprofit group, is negotiating a deal to buy the struggling dress-shirt company. The Made in the USA Foundation’s willingness is not contingent on Hathaway’s gaining the Air Force contract, Allen said.

Baldacci’s advice for the company: “Invest in people. Invest in equipment. If you don’t do either, I think it makes it a lot harder.”

Published in The Kennebec Journal and The Morning Sentinel, in Maine.