Dan River Sheds Apparel
August 15, 2005-- Home Textiles Today,
Dan River, Inc. is planning to sell its apparel fabric business as it focuses on home fashions.
The apparel fabric business also provides fabric prep services for converters as well as supplying home furnishings businesses with yarn-dyed wovens such as plaids, checks and stripes and seersucker constructions.
In a letter sent to customers, and signed by Jim Martin, president of the apparel fabrics division, customers were advised that the company will accept orders up to Dec. 2, “until capacity is filled.”
Shipments will end Dec. 2, and the company “is working with customers to anticipate their needs” between the end of the Dan River shipments and a new owner, Martin explained.
In the period up to Dec. 2, customer orders must be accompanied by a 25 percent cash deposit and shipments will be on a cash-before-delivery (CBD) basis to accounts in current payment status, the letter stated.
In lieu of a cash deposit, a sight letter of credit for the amount of the full order may be posted with the placement of the order.
“To offset this imposition, we will honor anticipation discounts against final payment equal to 10 percent per annum.” This policy, Martin said, “is a normal course of events for termination programs.”
The company has prospects for the sale, Martin related, and “a couple of companies are in due diligence.”
In February, the company emerged from Chapter 11 bankruptcy protection which it filed for in March 2004.
In a statement, Barry Shea, president and CEO, said, “Dan River has a strong heritage in apparel fabrics, but our future is in the home fashions arena … in which we see better growth opportunities.”
The company will retain its No Trace hunting apparel business.
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