More than a year has passed since Burlington Industries Inc., staggering under a huge debt load, sought bankruptcy court protection. Its Chapter 11 filing was the first wave in a storm that also swamped Malden Mills Industries, Galey & Lord Inc. and Guilford Mills.
This story first appeared in the December 31, 2002 issue of WWD. Subscribe Today.
Guilford, the last of that group to seek court protection, emerged from bankruptcy in October. But the other three remain in Chapter 11. Burlington has restructured itself substantially since its filing, closing plants and setting up a Hong Kong-based arm that contracts production to mills in Asia. It’s a bold move, but whether it will prove successful remains to be seen.
Malden has started a Chinese venture and stepped up its sales to the U.S. military, with the support of Massachusetts’ congressional delegation. The three firms are expected to emerge from Chapter 11 proceedings as early as next year.