NEW YORK -- Galey & Lord has created its second printed fabrics division and is calling it Group Two for Galey & Lord.

The new unit will offer printed apparel fabrics, primarily in 100 percent cotton, for the women's, men's and children's wear markets. It will also produce a limited amount of printed fabrics in rayon challis.

Arthur Wiener, chairman and chief executive officer, said the new division will complement Galey & Lord's first printed fabrics unit, which prints primarily on blends of polyester and rayon and 100 percent rayon.

Group Two will be headed by Leon Hecht, who will be executive vice president of the new unit, and Joe Richards, vice president, sales. Both Hecht and Richards, who report to Wiener, joined Galey & Lord from Cranston Apparel Fabrics Co., a division of Cranston Print Works. Hecht had been president of the Cloth Company unit of Cranston; Richards was out-of-town sales manager.

Both divisions will print fabrics at the company's specialty plant at Society Hill, N.C.

"We feel the print market is beginning to turn around, and the new division gives us additional products with which to address the market and pick up some additional share," said Wiener.

Wiener declined to forecast how much business Group Two could add to Galey & Lord, which had sales of $385.8 million in 1993, with $37.6 million of that in printed fabrics.

At Cranston, no successors are being named for Hecht and Richards. The Cloth Company unit has been consolidated into other operations of Cranston Apparel Fabrics.

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