Mill's woes 'fundamental'
Home & Textiles Today Staff -- Home Textiles Today, February 2, 2004
Ongoing problems at Dan River Inc. "appear to be fundamental," and possibly of long-term duration, said high-yield textiles analyst Jeffrey S. Stewart, of Charlotte-based Wachovia Securities.
Stewart, a long-time observer of the home fashions industry, said in a recent research report that after Dan River received a waiver of third-quarter debt covenants, "we were prepared for at least a few quarters of difficulty."
Now, Dan River has sought an additional waiver covering the fourth quarter, a move which "reinforces our belief that improvement may not be a near-term event and that the company's issues appear to be fundamental rather than market-oriented," said Stewart.
After two straight quarterly sales declines, he said, "We continue to believe that liquidity will be tight."
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