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IN BRIEF / TEXTILES

Pillowtex to Liquidate; 6,450 Workers Fired

July 31, 2003|From Bloomberg News

Pillowtex Corp., the maker of Royal Velvet and Fieldcrest towels and bedding, closed 16 plants and dismissed 6,450 workers, the largest firing in U.S. textile history, as the firm seeks to liquidate its assets under bankruptcy protection.

The Chapter 11 filing is the second in less than three years for Kannapolis, N.C.-based Pillowtex, which came out of bankruptcy protection in May 2002. Pillowtex said that GGST, a company formed by SB Capital Group, Gibbs International, Gordon Bros. Retail Partners and Tiger Capital Group, has offered to buy the assets. The company didn't disclose a price.

The bankruptcy filing is the latest by U.S. textile companies, which have struggled with slumping sales and low-cost imports.

Pillowtex shares fell 12.4 cents to 1.6 cents in over-the-counter trading.

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