Case facts

The Malden Mills factory burned down on December 11, 1995. A boiler at the company's plant
exploded, destroying three of the factory's buildings and causing 40% damage to the whole
plant. The fire happened during the company’s off season leading to minimized losses. Products
and new equipment were being stored in separate trailers and warehouses.

The fire injured 36 people and placed 2700 jobs at risk. The fire was later ruled an “industrial
accident.

$300,000,000 is the speculated amount of insurance money the company will receive.

2 days after the blaze, Feuerstein announced plans to pay his employees their full wages for 30
days. He eventually extend that offer to 90 days for the Pay checks, 180 days for benefits. Total
cost to Malden Mills is 25 million dollars.

He invested $100,000,000 in addition to the insurance settlement to build a state-of-the-art

factory, the first new textile mill in New England in more than 100 years.

Feuerstein struggled to maintain family control of the company. He needed to raise $92,000,000
by August of 2003 to satisfy his creditors.