NEW YORK – Industry sources and customers of Lanscot-Arlen Fabrics, Inc. said Tuesday that the textile converter has closed its New York offices. Lanscot-Arlen has made no official announcement and no one was available at its New York telephone number. Congress Financial, the Atlanta-based bank that backed Lanscot-Arlen's management team when it bought out the company two years ago also did not return calls seeking comment. It is not known whether the company has been brought into receivership or if anyone is lining up to buy the company's assets. Customers, meanwhile, are working to secure alternative means of supply.

In April, F&FI reported that Lanscot-Arlen, a converter of fabrics for apparel, textile and hospitality applications, was seeking a buyer or merger opportunity. Neither Lanscot-Arlen CEO Clement Ramdin nor president Bob Woodcock were available to confirm that at the time of the report, but in a subsequent conversation, Woodcock confirmed the report was accurate.

People close to the company believe a chief reason for Lanscot-Arlen's downfall was its failure to collect from its debtors with expedience. Notably, a domestic finished goods company, which owed Lanscot-Arlen about half a million dollars, went belly up early this year. Subsequently, the bank slashed the company's operating budget. As positions were steadily cut at the company, it fueled speculation that Lanscot-Arlen, once a $50-million company, was in a crisis.