The factory that made campaign hats for many of this year’s presidential candidates — and got a boost in orders for its “
Make Donald Drumpf Again” parody hats — has filed for bankruptcy protection.
Officials at Unionwear got special permission from a federal judge on Thursday to spend restricted cash on payroll for its 151 workers while looking for buyers. The Newark, N.J., company, which had $6.5 million in sales last year, filed for chapter 11 protection Monday and blamed its financial troubles on rising pension costs.
Unionwear president Mitch Cahn said in an interview Thursday that it’s a top priority for political campaign organizers to distribute hats with the proud “Made in America” label. Some campaign officials have even visited the factory to verify that the hats are, indeed, made on site, he said. Some hats also emphasize that the company’s workers are part of a union, though Republican candidates often prefer to keep that label off their hats, Mr. Cahn said.
Unionwear, formally named New Jersey Headwear Corp., began getting business from political campaign cycles in 2000. Sales grew quickly: during the 2008 presidential race, it made every hat for the campaigns of President Barack Obama and Sen. John McCain, Mr. Cahn said.
Workers assemble products at the Unionwear facility in Newark, N.J., in September. The hats of the table read 'Make America Rage Again.' Photo: David Williams/Bloomberg News
This year, Unionwear made hats for presidential contenders Hillary Clinton, Jeb Bush and Bernie Sanders, as well as both the Democratic and Republican conventions. It briefly made campaign hats for President-elect Donald Trump, before his campaign switched to another supplier.
The company was “very positively affected by the campaigns,” Unionwear bankruptcy lawyer William Katchen said during Thursday’s court hearing, adding that the pace of orders for campaign and non-campaign products alike has recently picked up.
Business also got a bump after comedian
John Oliver ordered hats with the slogan “Make Donald Drumpf Again” for a skit on his HBO show that claimed Mr. Trump’s ancestors altered the family name.
Unionwear’s campaign-related sales, though, are only a small part of its business. Founded in 1992, Unionwear also makes totes, messenger bags and other gear.
