WPS lowers loss 66 percent

WestPoint, Ga. — Putting behind it a $46.3 million one-time charge that dogged the bottom line a year ago, WestPoint Stevens, working its way through Chapter 11, narrowed its second-quarter loss 66.7 percent, to $24 million from $72 million last year.

More than 70 percent of the quarter's loss, a total of $17.4 million stems from various bankruptcy-related items, including $8.4 million in lawyer's fees and other bankruptcy costs and $9 million in various restructuring charges.

Sales improved 4.7 percent in a notably weak period for most U.S. home fashions producers, rising to $383 million from $365.7 million last year. Driving the gain was a huge 29 percent increase in bath products sales as the major mill picked up business and expanded its market share in towels after the collapse of the former Pillowtex Corp. Acting as a drag, though, sales of bedding products slipped 3 percent, the company said, due to slower sales of accessories. Taking a further bite out of the top line was the shutdown of 20 WestPoint Stevens retail stores and the ongoing liquidation of its United Kingdom operation.

M.L. "Chip" Fontenot, CEO, said the major mill is pushing ahead with its plans to emerge from bankruptcy. "The company is in the final stages of revising its business plan" and continues to negotiate new terms for a final plan of reorganization with its various creditor groups, he said.

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.

CURRENT ISSUE

HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!