American Fiber and Yarns Company To Shut Down Plant on October 17
October 2, 2008
BAINSBRIDGE, Georgia - Unable to pay off debts ranging from $10 to $50 million to its suppliers, American Fabrics and Yarns Holdings filed for Chapter 11 of the United States Bankruptcy Code on September 22, 2008. The large manufactruing plant has also announced that it will officially shut its doors on October 17.
''We have engaged an investment banker to get buyers,'' said Tim Boates of RAS Management Advisors, a company that was hired to handle the finances of AFY. ''In the past 18 months we have had a 55-60 percent increase in raw material costs.'' Boates cited materials and products costs as the driving factor behind the decision.
The shutting down of the country's largest fiber producer has already had drastic effects. Its reported 240 employees have been laid off, and AFY's clients, which also happen to be some of the country's biggest brand names, are left to find alternative sources.
''We have engaged an investment banker to get buyers,'' said Tim Boates of RAS Management Advisors, a company that was hired to handle the finances of AFY. ''In the past 18 months we have had a 55-60 percent increase in raw material costs.'' Boates cited materials and products costs as the driving factor behind the decision.
The shutting down of the country's largest fiber producer has already had drastic effects. Its reported 240 employees have been laid off, and AFY's clients, which also happen to be some of the country's biggest brand names, are left to find alternative sources.
