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Aaron Feuerstein

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Aaron Feuerstein
Born(1925-12-11)December 11, 1925
Brookline, Massachusetts, U.S.
DiedNovember 4, 2021(2021-11-04) (aged 95)
Brookline, Massachusetts, U.S.
Alma materYeshiva University[1]
OccupationBusinessman
Known forCEO Malden Mills, Polartec fabric
Spouse
Marika Rosenbaum
​
(died 1984)​
[2]
Louise Feuerstein
​
​
(m. 1988; died 2013)​
[3]
ParentSamuel (father)[1]
RelativesRabbi Moses Feuerstein (brother)[4]

Aaron Mordechai Feuerstein (December 11, 1925 – November 4, 2021) was an American industrialist, philanthropist, and the third-generation owner[5][6] and CEO of Malden Mills in Lawrence, Massachusetts. Some remember him as “the mensch who saved Christmas”[5] when he publicly declared: “I am not throwing three thousand people out of work, two weeks before their holiday.” [7]

After a major fire at Young Israel of Brookline, a synagogue founded by his father, Feuerstein donated $1,000,000 to help rebuild.[8]

Early life and education

Feuerstein was born in Brookline, Massachusetts, on December 11, 1925.[9][10] He attended Boston Latin School and graduated from Yeshiva University in 1947, majoring in English and philosophy.[11][12]

Career

Feuerstein began working for the family company, Malden Mills, after he graduated in 1947.[13] By 1970s, he began to take charge of the company, leading it during the disastrous fake fur market. In 1980, the company was filed for bankruptcy and had to lay off workers.[13]

On December 11, 1995, the Malden Mills factory, a facility that Feuerstein's grandfather built, burned down.[14] Feuerstein used his insurance money to rebuild it, and to pay the salaries of all the now-unemployed workers while it was being rebuilt.[15] Feuerstein spent millions keeping all 3,000 employees on the payroll with full benefits for ninety days.[16] He came to prominence globally by going against common business practices, especially at a time when many companies were downsizing and moving overseas.[17] "By the end of 1996 the plant was rebuilt."[7]

Feuerstein, a devout Orthodox Jew,[18] said that he could not have taken another course of action due to his study of the Talmud and the lessons he learned 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 worth less to Wall Street, but I can tell you it's worth more.

— Parade Magazine, 1996

This cost Feuerstein $25,000,000 and his CEO position as his family lost control of the company.[18] In November 2001, Malden Mills filed for chapter 11 bankruptcy. 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 DOD contract in 2006.[19] In January 2007, however, Malden Mills filed for bankruptcy again and ended production in July.[20] The company's underfunded (by 49%) pension was abandoned due to sale of corporate assets.[21]

Personal life

Feuerstein was an alumnus of Camp Modin in Belgrade, Maine, and the keynote speaker at the 75th annual reunion in 1997.[citation needed] Feuerstein was also a member of Young Israel of Brookline.[22]

Feuerstein died of pneumonia on November 4, 2021, in a Boston hospital at the age of 95.[23][24][8]

Family

Feuerstein married twice; both wives predeceased him. His surviving descendants include 3 children and six grandchildren.[8]

Honors

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.[25] Two years prior, he was cited by then President Bill Clinton during his 1996 State of the Union Address, lauding him for his handling of the Malden Hills disaster.[26]

References

  1. ^ a b "Aaron Feuerstein's labor of love: A throwback to a patrician era fights an uphill battle to regain control of company his grandfather founded". The Boston Globe. September 14, 2003.
  2. ^ Kerber, Ross; Gardizzy, Anissa (November 5, 2021). "A hero to workers after Malden Mills fire, Aaron Feuerstein dies at 95". The Boston Globe.
  3. ^ McKenna, Kathleen (September 26, 2013). "Louise Feuerstein, 76; worked with husband to rebuild Malden Mills". The Boston Globe.
  4. ^ Karasick, Joseph, Rabbi (March 18, 2009). "Obituary of Rabbi Moses Feuerstein". Orthodox Union OU News. Archived from the original on March 3, 2013.{{cite web}}: CS1 maint: multiple names: authors list (link)
  5. ^ a b Thomas Grillo (November 20, 2012). "Lofts debut at historic Malden Mills in Lawrence". BizJournals.com (Boston). Retrieved January 5, 2023.
  6. ^ "Polartec: Polartec Promise". Archived from the original on February 22, 2004.
  7. ^ a b Paysach J. Krohn (2022). The Grandeur of the Maggid. p. 144. ISBN 978-1-4226-3262-8.
  8. ^ a b c Risen, Clay (November 5, 2021). "Aaron Feuerstein, Mill Owner Who Refused to Leave, Dies at 95". The New York Times. ISSN 0362-4331. Retrieved November 6, 2021.
  9. ^ Vaughn, Susan (November 3, 1997). "Firms Find Long-Term Rewards in Doing Good". Los Angeles Times. Retrieved February 25, 2013.
  10. ^ Forbes Great Success Stories: Twelve Tales of Victory Wrested from Defeat. Wiley. 2000. p. 12. ISBN 9780471383598.
  11. ^ "Aaron Feuerstein, Founder, Chair, CEO, Malden Mills, awarded Honorary Doctor of Humane Letters Degree at Graduation Ceremonies in New York".
  12. ^ "Holding the Line : People.com". Archived from the original on December 2, 2008.
  13. ^ a b Crainer, Stuart; Dearlove, Des (2000). Generation Entrepreneur: Shape Today's Business Reality, Create Tomorrow's Wealth, Do Your Own Thing. London: FT Press. p. 231. ISBN 0-273-64920-5.
  14. ^ Foxman, Abraham H. (2010). Jews and Money: The Story of a Stereotype. New York, NY: St. Martin's Publishing Group. p. 15. ISBN 978-0-230-11225-4.
  15. ^ Kwiatkowski, Stefan (July 28, 2017). Entrepreneurship: Values and Responsibility. New Brunswick: Transaction Publishers. p. 217. ISBN 978-1-351-29778-3.
  16. ^ "Aaron Feuerstein dies at 95, paid idled workers after mill fire". FX Empire. November 5, 2021. Retrieved November 15, 2021.
  17. ^ "Downsizing Prevails as Customers Resist Paying More". The New York Times. November 26, 1996.
  18. ^ a b Hoffman, W. Michael; Frederick, Robert E.; Schwartz, Mark S. (2014). Business Ethics: Readings and Cases in Corporate Morality. Malden, MA: John Wiley & Sons. p. 278. ISBN 978-1-118-33668-7.
  19. ^ "Congress Awards Malden Mills Major Military Contracts for 2006". Archived from the original on May 21, 2006.
  20. ^ Bloomberg News. "Malden Mills Returns to Bankruptcy". The New York Times. January 11, 2007. Retrieved February 25, 2013.
  21. ^ "PBGC Protects Pensions at Malden Mills". Archived from the original on August 14, 2009.
  22. ^ "Despite bankruptcy, former Malden Mills owner glad he saved jobs after historic fire". December 12, 2015.
  23. ^ "A hero to workers after Malden Mills fire, Aaron Feuerstein dies at 95". The Boston Globe. Retrieved November 6, 2021.
  24. ^ Kerber, Ross (November 5, 2021). "Aaron Feuerstein dies at 95, paid idled workers after mill fire". Reuters. Retrieved November 6, 2021.
  25. ^ "Courage of Conscience Award Recipients". Archived from the original on June 10, 2014.
  26. ^ Zaremba, Alan Jay (2010). Crisis Communication: Theory and Practice. New York, NY: M.E. Sharpe. p. 88. ISBN 978-0-7656-2051-4.

Further reading

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