When a fire destroyed the Malden Mills factory in Lawrence, Massachusetts, its 70-year-old owner, Aaron Feuerstein, could

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When a fire destroyed the Malden Mills factory in Lawrence, Massachusetts, its 70-year-old owner, Aaron Feuerstein, could have shut down the business, collected the insurance money, and sailed off into retirement. But a layoff of the factory’s 3,000 employees would have been a major economic blow to the region. So instead Feuerstein kept the workers on the payroll while he rebuilt the factory. These actions gained him a national reputation as a business hero. Many consumers promised to buy more of the company’s Polartec fabric. In the end, however, the story did not have a fairy-tale ending: Five years after the fire, Malden Mills filed bankruptcy papers. The company was not able to pay off the loans it had incurred to keep the business going.

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Business Law and the Legal Environment

ISBN: 978-1133587491

5th edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson

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