Auction approval pending
October 7, 2003-- Home Textiles Today,
Wilmington, DE — A federal bankruptcy court this afternoon is expected to consider approving Pillowtex's asset sale to GGST LLC, the liquidation joint venture that bid $128 million last week to buy the remnants of the mill.
Although some objections remain to be heard, most participants expect the auction result to be ratified by chief judge Peter Walsh.
With that pending approval, attention has already shifted to exactly how GGST will dispose of the company's assets, particularly its brands, which it had earlier indicated it might seek to license out. Since first expressing interest in Pillowtex prior to its July bankruptcy filing, GGST has stated on several occasions that it has no interest in operating any part of the business but would seek to sell off or license its assets.
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