TexStyle Files For Ch. 11
May 13, 2011-- Home Textiles Today,
NEW YORK - Multi-category home textiles supplier TexStyle filed for Chapter 11 bankruptcy protection last week. The company expects to emerge this summer.
"TexStyle remains fully operational and will continue to fully service its customers. The company expects court approval of a financing package from Wells Fargo Business Credit to finance its continued operations," said Guyer McCracken, chief operating officer and cfo.
In September 2010, thenowner Babine Lake Corporation sold the company to Bolan Textile (HK) Limited of China, which made a $500,000 equity infusion into TexStyle and a $1 million secured loan to the supplier. That was followed by an additional $80,000 loan from Bolan in December.
McCracken told HTT Bolan plans to increase its investment in the company during the restructuring. No changes in ownership or management are planned, he added. No layoffs are planned because of the filing, he said. According to the filing in the Bankruptcy Court of the Southern District of New York, TexStyle has 19 employees.
Court papers show the company with roughly $7.6 million in assets and about $13.8 million in liabilities.
Last year, TexStyle recorded losses of more than $4 million on sales of $16 million, according to the filing. That compares to 2009, when the company generated sales of $26 million and losses of $2 million, court papers state.
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