NEW YORK — Citing the need to lighten a crushing debt load, Dan River Inc. filed for Chapter 11 bankruptcy Wednesday in Georgia’s Northern District court.
But company officials emphasized that they believed their fairly simple debt structure — $157 million worth of bonds with an effective rate of 14 percent — would allow for a brief period of court protection. They said in a statement they hoped the company would emerge from proceedings by the end of the year.
“The strength of our operations and our ability to generate positive cash flow distinguish Dan River from other companies in our industry that have gone through this process and failed,” chairman and chief executive officer Joseph Lanier said in a statement.
In a letter to employees, Lanier wrote, “Chapter 11 means reorganization, not liquidation.” The company said it had secured $145 million of debtor-in-possession financing to allow it to continue to operate while it restructures its debts.
Most of the major mills in the U.S. have been through bankruptcy during the past three years, with Burlington Industries, Cone Mills, Malden Mills, Guilford Mills and Galey & Lord all having filed for protection, but later emerged. A notable U.S. textile company that last year filed for bankruptcy and quickly liquidated was Pillowtex.
The Danville, Va.-based company’s petition showed $371.8 million in debts and $441.8 million in assets.
For the nine months ended Sept. 27 — the most recent period for which the company has filed financial results — Dan River recorded a $120.2 million net loss, which included a $91.7 million goodwill write-off and $20.8 million in interest expenses. A year earlier, the company had taken a $17.5 million loss.
Sales for the period were $262.2 million, off 20.3 percent, with apparel-fabrics sales coming in at $79.7 million, down 20.4 percent. The bulk of the company’s apparel-fabrics sales are for men’s wear and uniforms.
Lanier noted that the company has taken a variety of steps in recent years to cut its costs. In November, the company said it was closing two plants, which reduced its head count by 243 workers, to about 4,800.
According to court papers, the company’s leading creditors are HSBC Bank USA, with a $167.3 million claim, and SunTrust Bank, with a $3.3 million claim. No other creditor held a claim of $1 million or higher.The company also petitioned for approval to name Woolard Harris as chief restructuring officer.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)