Quaker Fabric likely to liquidate
July 3, 2007,
Fall River,Mass.– Upholstery and jacquard fabric manufacturer Quaker Fabric said it plans to liquidate its business.
Quaker said in a prepared statement that it “has not met the requirements for committed borrowings under its existing lending facilities and, as a result, any advances to the company by its revolving lenders will only occur on a discretionary basis,” the troubled company said.
Quaker called it “likely” that it will commence “an orderly liquidation of its business and a sale of its assets.”
The company, founded in 1945, further said it is “actively investigating sources of alternative liquidity, including debt, equity or a combination of debt and equity financing. There is significant uncertainty as to whether the company will be able to obtain sufficient liquidity from alternative sources to continue its operations after its annual shutdown period, which this year runs from July 2 through July 15, 2007.”
“The company expects that any such winding up and liquidation would not generate sufficient funds to permit any payment to holders of its common stock,” the notice concluded.
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