Valdese Weavers Purchases Circa 1801, Joan Contract
June 27, 2007
WILMINGTON, Deleware—Valdese Weavers Inc, Valdese, N.C. and Gordon Brothers Group jointly paid $29.75 million for the assets of Circa 1801 Doblin, a Connelly Springs, N.C. upholstery weaving mill, and the Joan Fabrics contract division.
Mike Shelton, president of Valdese was part of a team of six from Valdese who attended the auction. Gordon Bros. purchased the non-operating assets including idle plants and the machinery not utilized by Circa 1801/Doblin or the contract division of Joan.
Initially, bids for smaller and separate pieces of the business were entertained but the winning bid was greater than the sum of the parts, said Rick Heller, COO of Joan Fabrics Corp. which is in Chapter XI bankruptcy status. The proceeds will be used to settle with Joan creditors.
The sale is subject to the approval of the bankruptcy court, said Heller, also a partner in Carl Marks & Associates, the consulting firm which has managed Joan Fabrics Corp. since April when Elkin McCallum, the previous owner and chairman of Joan was indicted for financial fraud.
The combined bid from Valdese and Gordon Brothers won out over several other bidders at an auction which lasted from 10 a.m. until 9 p.m. on June 26 here. The closing is expected (pending court approval) by mid July.
Texel, the yarn division based in Mexico, was sold to JFC Holdings for $1.55 million. McCallum is still affiliated with JFC Holdings, Heller said.
In 1997, Joan Fabrics Corp. was part of a $600 million textile colossus created by McCallum which included Mastercraft, the largest single upholstery mill in the world. Industry observers said the Joan organization deteriorated due to the onslaught of imported fabrics in the USA and the current legal problems McCallum is now mired in.
Mike Shelton, president of Valdese was part of a team of six from Valdese who attended the auction. Gordon Bros. purchased the non-operating assets including idle plants and the machinery not utilized by Circa 1801/Doblin or the contract division of Joan.
Initially, bids for smaller and separate pieces of the business were entertained but the winning bid was greater than the sum of the parts, said Rick Heller, COO of Joan Fabrics Corp. which is in Chapter XI bankruptcy status. The proceeds will be used to settle with Joan creditors.
The sale is subject to the approval of the bankruptcy court, said Heller, also a partner in Carl Marks & Associates, the consulting firm which has managed Joan Fabrics Corp. since April when Elkin McCallum, the previous owner and chairman of Joan was indicted for financial fraud.
The combined bid from Valdese and Gordon Brothers won out over several other bidders at an auction which lasted from 10 a.m. until 9 p.m. on June 26 here. The closing is expected (pending court approval) by mid July.
Texel, the yarn division based in Mexico, was sold to JFC Holdings for $1.55 million. McCallum is still affiliated with JFC Holdings, Heller said.
In 1997, Joan Fabrics Corp. was part of a $600 million textile colossus created by McCallum which included Mastercraft, the largest single upholstery mill in the world. Industry observers said the Joan organization deteriorated due to the onslaught of imported fabrics in the USA and the current legal problems McCallum is now mired in.
