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Pillowtex fights back

Wilmington, DE — Pillowtex has filed suit against Target Corp., Mervyn's and May Company seeking payment of more than $9 million in current and past due invoices, in the process also challenging chargebacks levied by some of the retailers.

The action comes about two weeks after Target filed papers with the bankruptcy court seeking nearly $2.5 million in chargebacks against the defunct mill, which earlier this week closed on the sale of most of its assets to GGST LLC for $121 million.

Depositions from buyers for Target Stores, Marshall Field's and Mervyn's are scheduled for Monday, Nov. 10, at Pillowtex's local bankruptcy attorney's offices here.

Pillowtex charges that Target owes it more than $2.4 million in outstanding invoices, some of which are up to a year old.

Separately, Pillowtex charged that May Company and its affiliates owe nearly $6.6 million in current and past due amounts up to nearly two years old. Pillowtex claims the amounts are owed by Famous Barr, Filenes, Foley's, Hecht's and Robinson May.

A hearing on the earlier Target chargeback claims has been rescheduled for Dec. 8. No dates have yet been set for the complaints against Target or May Co.

Separately, in its sale closing, GGST elected to exclude from the transaction the Pillowtex facilities located in Eden, NC; Kannapolis, NC (except for the IT building); Dallas; Hanover, PA; and Tunica, MS. Pillowtex intends to market the excluded facilities for sale.

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