US: Burke Mills faces
November liquidation
3 September 2008| Source: just-style.com
Textile dye house
Burke Mills is to close down on 1 November with the loss of more than 100 jobs,
the company has announced.
In a brief
announcement, the North Carolina-based company said it had issued a WARN Act
notice to its employees, and would lay off all but a skeleton staff within 60
days.
Up to 130 people
are believed to work at the company.
Established in
1948, Burke Mills dyes yarn for knitting and weaving at its plant in Valdese,
but has lost accounts in recent years as clients increasingly moved their
business overseas to cut costs.
In the six
months to 28 June, the company recorded a 20% fall in net sales to US$8.3m.
Its net loss was
$630,000, substantially down on last year thanks to cost-cutting measures.
Burke Mills said
its board of directors had adopted a plan of liquidation that would be
submitted to shareholders at a special meeting to be held in late September.
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