Aaron Feuerstein
Encyclopedia
Aaron Feuerstein was the third-generation owner and CEO of Malden Mills in Lawrence, Massachusetts
.
When the Malden Mills factory burnt down on December 11, 1995, Feuerstein decided not only to use his insurance money to rebuild it, but to also pay the salaries of all the now-unemployed workers while it was being rebuilt. Feuerstein spent millions keeping all 3,000 employees on the payroll with full benefits for 6 months. By going against common CEO business practices, especially at a time when most companies were downsizing and moving overseas, he achieved a small degree of fame.
Feuerstein claimed that he couldn't have taken another course of action due to his study of the Talmud
and the lessons he learnt there:
It would cost Aaron Feuerstein $25,000,000, his CEO position, and a November 2001 filing of chapter 11 bankruptcy to 'do the right thing'. The company achieved solvency again with the help of creditor generosity and government subsidies. Malden Mills later garnered some lucrative Department of Defense
(DOD) contracts for 'smart' products that interweave fiber optic cabling, electronic biosensors, and USB ports into polar fleece
fabric. Malden Mills was awarded a $16 million dollar DOD contract in 2006. In January 2007, however, Malden Mills filed for bankruptcy again and ended production in July.. The company's underfunded (by 49%) pension was abandoned due to sale of corporate assets.
Feuerstein is an alumnus of Camp Modin
in Belgrade
, Maine
, and was the keynote speaker at the 75th annual reunion in 1997. Feuerstein is a member of Young Israel of Brookline.
An Industrialist and philanthropist, for setting the standard for commitment to employees following a devastating fire at his Malden Mills manufacturing plant, he was awarded the Peace Abbey Courage of Conscience Award on March 13, 1998.
Lawrence, Massachusetts
Lawrence is a city in Essex County, Massachusetts, United States on the Merrimack River. According to the 2010 U.S. Census, the city had a total population of 76,377. Surrounding communities include Methuen to the north, Andover to the southwest, and North Andover to the southeast. It and Salem are...
.
When the Malden Mills factory burnt down on December 11, 1995, Feuerstein decided not only to use his insurance money to rebuild it, but to also pay the salaries of all the now-unemployed workers while it was being rebuilt. Feuerstein spent millions keeping all 3,000 employees on the payroll with full benefits for 6 months. By going against common CEO business practices, especially at a time when most companies were downsizing and moving overseas, he achieved a small degree of fame.
Feuerstein claimed that he couldn't have taken another course of action due to his study of the Talmud
Talmud
The Talmud is a central text of mainstream Judaism. It takes the form of a record of rabbinic discussions pertaining to Jewish law, ethics, philosophy, customs and history....
and the lessons he learnt there:
- "I have a responsibility to the worker, both blue-collar and white-collar. I have an equal responsibility to the community. It would have been unconscionable to put 3,000 people on the streets and deliver a deathblow to the cities of Lawrence and Methuen. Maybe on paper our company is worthless to Wall Street, but I can tell you it's worth more."
- —(Parade Magazine, 1996)
It would cost Aaron Feuerstein $25,000,000, his CEO position, and a November 2001 filing of chapter 11 bankruptcy to 'do the right thing'. The company achieved solvency again with the help of creditor generosity and government subsidies. Malden Mills later garnered some lucrative Department of Defense
United States Department of Defense
The United States Department of Defense is the U.S...
(DOD) contracts for 'smart' products that interweave fiber optic cabling, electronic biosensors, and USB ports into polar fleece
Polar fleece
Polar fleece, usually referred to simply as "fleece," is a soft napped insulating synthetic fabric made from Polyethylene terephthalate or other synthetic fibers. One of the first forms was Polar Fleece created in 1979 by Malden Mills, now Polartec LLC., a new, light and strong pile fabric meant...
fabric. Malden Mills was awarded a $16 million dollar DOD contract in 2006. In January 2007, however, Malden Mills filed for bankruptcy again and ended production in July.. The company's underfunded (by 49%) pension was abandoned due to sale of corporate assets.
Feuerstein is an alumnus of Camp Modin
Camp Modin
Camp Modin is a co-ed summer camp located on an approximate site in Belgrade, Maine. It is among the oldest private Jewish camps in the US, founded in 1922 by Alexander Dushkin. Many children go there from all over the world - Spain, Australia, Hungary, Israel, France, and China...
in Belgrade
Belgrade, Maine
Belgrade is a town in Kennebec County, Maine, United States. The population was 2,978 at the 2000 census. Belgrade's population, however, approximately doubles during the summer months as part-year residents return to seasonal camps located on the shores of Great Pond, Long Pond and Messalonskee...
, Maine
Maine
Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost...
, and was the keynote speaker at the 75th annual reunion in 1997. Feuerstein is a member of Young Israel of Brookline.
An Industrialist and philanthropist, for setting the standard for commitment to employees following a devastating fire at his Malden Mills manufacturing plant, he was awarded the Peace Abbey Courage of Conscience Award on March 13, 1998.