Malden files Ch. 11; gets financing
December 10, 2001,
Malden Mills, manufacturer of the Polartec family of products, has filed for Chapter 11 reorganization, while at the same time announcing it is receiving $20 million in funding from its lenders to continue operations.
In the home textiles manufacturing sector, Malden Mills is known for its production of Polartec fabrics for blankets. This fall the company introduced a wireless electric version of its Polartec blanket for Lands' End, which retails for $159 for a full to $219 for a king size.
"This reorganization allows Malden Mills to emerge from the challenges we have faced since the catastrophic fire that nearly destroyed our company in late 1995," Feuerstein said. "Today begins a new chapter in Malden Mills' 95-year history as a stronger, more highly focused and profitable company. Our internationally renowned brand name, our pioneering research and development arm, coupled with our strong customer base and our dedicated work force, will keep Malden Mills at the forefront of the industry for many years to come."
According to Richard Mikels, an attorney for Malden Mills, the company owes approximately $160 million to various creditors, chief among them the bank group of GE Capital Corporation, Special Value Investment Management and First Essex Bank, which is owed $140 million.
The bank group, however, is also financing the company's reorganization and is the lender of the $20 million in funding, which will be used for working capital.
Malden's next largest creditor is listed as Costco Wholesale in the amount of $3 million. Also listed among the company's list of top 20 creditors are The North Face, Eddie Bauer Inc., Patagonia and Lands' End.
Mikels also said Malden currently has no timetable as to when it will emerge from the reorganization.