Dan River to Sell Engineered Fabrics Division

Slimming down and raising cash as it prepares to exit bankruptcy some time after the first of the year, Dan River Inc. has cut a deal to sell its engineered fabrics division for about $9.4 million in cash.

The division produces specialty textiles fabrics, like the heavy material found in fire hoses.

Dan River acquired the business as part of its earlier buyout of The Bibb Company and that operation's core home fashions business.

The engineered products business is being acquired by Porterdale Acquisition, LLC, a company affiliated with Industrial Specialty Fabrics Inc. and Royal Cord Inc., producers of yarns and fabrics for the rubber goods market. The sale is subject to approval by the U.S. Bankruptcy Court for the Northern District of Georgia, Newnan Division, and the final price is subject to post-closing adjustments.

During the recent third fiscal quarter, the operation recorded sales of $8.4 million, up 23.9 percent from $6.8 million during the same period a year ago. For the nine months year-to-date, the division put up sales of $25.9 million, roughly flat with $25.6 million last year. During the third quarter, the operation recorded a modest operating profit of about $100,000, recovering from a prior-year loss of $1 million.

Bob Major, president of the unit, commented, “This is a very positive development for Dan River's engineered products business and for its customers. A number of parties expressed an interest in acquiring, improving and developing its business.”

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

  • 1200 Suppliers are Ready for You at Intertextile Shanghai

    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.

CURRENT ISSUE

HTT August 2017

See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.

See details!