Pillowtex moves toward reorg

WILMINGTON, Del. -- Nearly two-and-a-half years after it filed for bankruptcy protection, a preliminary disclosure statement and reorganization plan have been filed for Pillowtex Inc.

It’s apparently still a work in progress, however, since several potentially multi-million dollar lawsuits --, including class action and union-led WARN Act suits affecting some 7,500 workers -- are still pending. While the plan has been filed with the federal bankruptcy court here, no date has been set to file objections or set a vote on confirmation.

“We have not yet scheduled a disclosure hearing, we’re still working on finalizing some of the issues of the plan,” said creditors’ committee attorney Mark Indelicato. “Our hope is to get it filed sometime within the next couple of weeks.” The creditors’ committee is a proponent of the plan.

The plan proposes to pay priority tax, administrative, and first- and second-tier secured lenders up to100 percent. A third class of “convenience claims” that includes unsecured creditors who agree to lower their outstanding claims to less than $10,000 would receive a 12 percent payout. A fourth class of general unsecured creditors would receive a pro rated share of the remaining distribution -- an amount not yet set because of the pending litigation, among other reasons. Equity holders would receive no payouts under the proposal.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.


HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!