The $68 billion
Germany-based Hugo Boss, a high-end suit maker, is a portfolio company of
The letter, signed by the chairman of the Ohio PERS board, Ken Thomas, and CEO Chris DeRose, said, in part, “The investment performance of Permira IV has underperformed our expectations and is inconsistent with the reputation of your institution.” It went on to note that due to what it considered the poor performance of the fund and a lack of good faith bargaining in trying to keep the plant open, the “board now has concerns about future involvement with your institution.”
As of March 31, 2009, data from the
Nearly 400 jobs are at stake, according to Workers United, the union representing the plant’s employees; the factory is scheduled to close in April. The pension fund is asking the company to talk with public officials, who have already offered financial incentives to keep the plant open. In January, Workers United filed a federal unfair labor practice complaint against Hugo Boss.
The union is approaching public pension funds in California, Massachusetts, New Hampshire, Pennsylvania and Texas to encourage them to re-evaluate their relationships with Permira. Permira’s backers include the
In November 2008, Permira gave investors the ability to cap their commitments to Permira IV at 60 percent, after the fund’s largest LP,