Burlington House sells fabric biz to Tietex

Greensboro, NC — Spartanburg, SC-based Tietex International will purchase the residential upholstery fabric business of the Burlington House division of Burlington Inds.

Burlington, which is operating under Chapter 11, has been restructuring its Burlington House division. It has sold the Bacova bath division and has a deal pending with Springs Inds. for Springs to buy Burlington's bedding and window businesses. The Springs deal is expected to close shortly, according to Delores Sides, Burlington's public relations manager.

In April, Richloom Fabrics Group had signed a definitive agreement to acquire the residential upholstery business.

The bankruptcy process went forward, Jim Richman, president of Richloom, explained, and the complexity of the deal changed and the dollars changed dramatically. "We are looking forward to future acquisitions and have plenty of funding for them."

Subsequently, other bids for the residential upholstery business were offered last week, and Tietex was awarded the purchase, according to Sides.

Tietex will purchase the Sheffield facility in Rocky Mount, NC, as an ongoing operation and lease a portion of the company's weave capacity at the Williamsburg facility in Matkins, NC. Tietex expects to employ the majority of the employees at Sheffield and those associated with upholstery production at Williamsburg. The agreement also includes inventories, intellectual properties and a license to use the Burlington House name for upholstery fabrics.

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.

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