Burlington Files Ch.11 Bankruptcy
November 15, 2001
Greensboro, NC (USA)— Burlington Industries, Inc. has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
In round numbers, Burlington had a net loss of $91 million for its fiscal year 2001 ended September 29 on sales of $1.4 billion versus a $526 million loss a year earlier on sales of $1.6 billion. Pre-tax income of the interior furnishings business (excluding carpet) was $12 million in fiscal year 2000 on sales of $496 million versus a loss of $17 million in 2001 on sales of $371 million.
Continued liquidation of Burlington assets in 2002 is planned, the company said.
The bankruptcy filing covers all subsidiaries except for international operations, joint venture partnerships, Nano-Tex LLC and Burlington Worldwide Ltd., a recently formed Hong Kong based subsidiary.
The bankruptcy filing includes Burlington House and its related product lines. These include: interiors, bedding, window and ticking. Recently, the residential and contract upholstery lines were consolidated under one manager, Mike Durham, vice president of the newly named interiors division.
Burlington chairman George Henderson said the company would focus on four key strengths under the protection of Chapter 11.
Burlington expects to continue to build the Lees carpet business; expand global sourcing partners and leverage its styling and technology capability internationally. It also plans to further develop Nano-Tex technology as well as build upon and accelerates manufacturing improvements in its North American plants.
Henderson said the "excess level of debt in our capital structure necessitated the filing A key factor that led Burlington to take these steps is the U.S. Government's history of using the textile industry as a bargaining chip in international relations. The results have been devastating for the industry," he said.
In round numbers, Burlington had a net loss of $91 million for its fiscal year 2001 ended September 29 on sales of $1.4 billion versus a $526 million loss a year earlier on sales of $1.6 billion. Pre-tax income of the interior furnishings business (excluding carpet) was $12 million in fiscal year 2000 on sales of $496 million versus a loss of $17 million in 2001 on sales of $371 million.
Continued liquidation of Burlington assets in 2002 is planned, the company said.
The bankruptcy filing covers all subsidiaries except for international operations, joint venture partnerships, Nano-Tex LLC and Burlington Worldwide Ltd., a recently formed Hong Kong based subsidiary.
The bankruptcy filing includes Burlington House and its related product lines. These include: interiors, bedding, window and ticking. Recently, the residential and contract upholstery lines were consolidated under one manager, Mike Durham, vice president of the newly named interiors division.
Burlington chairman George Henderson said the company would focus on four key strengths under the protection of Chapter 11.
Burlington expects to continue to build the Lees carpet business; expand global sourcing partners and leverage its styling and technology capability internationally. It also plans to further develop Nano-Tex technology as well as build upon and accelerates manufacturing improvements in its North American plants.
Henderson said the "excess level of debt in our capital structure necessitated the filing A key factor that led Burlington to take these steps is the U.S. Government's history of using the textile industry as a bargaining chip in international relations. The results have been devastating for the industry," he said.