Culp Looking To Sell Wet Printed Flock Operations
March 27, 2002
Hight Point, NC (USA) - If Culp Inc. does not sell its printed flock upholstery fabrics operations by 28 April, it will close them, the company announced. Sales of wet printed flocks contributed $17.6 million to the company's sales of $374.6 million for the 12-month period ended in January 27, 2002. In the same period, these assets resulted in an after-tax loss of $1.3 million ($0.12 per share).
The operations include a printing facility in Lumberton, N.C., and some operations in Burlington, N.C. "The Lumberton plant emplys approximately 76, about 25 of whom would be effected," the company said.
"Our goal is to find a course that not onlymeets the company's needs but also respects the contribution of the employees who are involved in this portion of our business," said Robert Culp, III, chief executive officer. "We are continuing to manufacture and market wet printed flocks as we evaluate our alternatives. As we have previously indicated, however, our sales of wet printed flocks have declined significantly in recent years due principally to the strength of the U.S. dollar. We are also experiencing a broad shift in consumer preferences toward other upholstery fabrics, especially textured fabrics, which we are unable to manufacture on the same equipment used to produce wet printed flocks."
The operations include a printing facility in Lumberton, N.C., and some operations in Burlington, N.C. "The Lumberton plant emplys approximately 76, about 25 of whom would be effected," the company said.
"Our goal is to find a course that not onlymeets the company's needs but also respects the contribution of the employees who are involved in this portion of our business," said Robert Culp, III, chief executive officer. "We are continuing to manufacture and market wet printed flocks as we evaluate our alternatives. As we have previously indicated, however, our sales of wet printed flocks have declined significantly in recent years due principally to the strength of the U.S. dollar. We are also experiencing a broad shift in consumer preferences toward other upholstery fabrics, especially textured fabrics, which we are unable to manufacture on the same equipment used to produce wet printed flocks."