Engineering Management Case Studies

Malden Mills, a textile company in Lawrence, Massachusetts, is best known for producing the famous Polartec fabric , a synthetic fleece material used in outdoor clothing. However, the company gained widespread attention not only for its innovative product but also for the extraordinary leadership of its CEO, Aaron Feuerstein , during a time of crisis. In December 1995, a catastrophic fire destroyed three of the Malden Mills’ factory buildings, putting over 1,400 jobs at risk and nearly wiping out the company. What followed was a remarkable display of ethical leadership, as Feuerstein made the unusual decision to keep paying the salaries of all his employees while the plant was being rebuilt. This case study explores the events surrounding the fire, the decisions made by Aaron Feuerstein, and the eventual financial struggles of the company. Background of Malden Mills Founded in 1906, Malden Mills was a textile manufacturer that became renowned for its innovative and high-quality fabrics...