Gannaway takes reigns at Pillowtex

Kannapolis, NC — Amid mounting speculation that textiles giant Pillowtex Corp. is on the block and could soon be sold or split into pieces — perhaps as soon as next month — chairman and ceo David Perdue has jumped ship only 10 months after joining the company from Reebok.

Taking the top spot is Michael Gannaway, who joined Pillowtex only six months ago as president and coo after a career at Sara Lee Corp.

Perdue leaves Pillowtex as doubts continue to swirl about the mill's future as an independent company, speculation that intensified when Gannaway confirmed in a statement that Pillowtex had hired investment banker Credit Suisse First Boston "to evaluate and explore a broad range of strategies," boiler-plate language that usually indicates a company is for sale.

The Perdue defection was not entirely unexpected, since the ceo was widely known to be unhappy in the job and concerned that headhunters had misled him about the company's market position and sales and earnings prospects when he was recruited for the job.

Since he joined Pillowtex, the company successfully emerged from Chapter 11, but only to start losing money once again as it recorded double-digit declines in sales. Moreover, a big chunk of Perdue's compensation was in stock, which is now trading at just $0.26 a share, down more than 97 percent from a 52-week high of $9.15 a share.

Perdue's is just the latest vacancy in the executive suite, following the recent resignation of Scott Shimizu, executive vp and sales and marketing chief, and the ouster last fall of Tony Williams, former president and coo, who had guided the major mill off the shoals of bankruptcy.

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 Current issue for September 2017

See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more... See details!