Wool Growers Lose
Another Topmaker

CLARKSVILLE, Va. — Burlington Industries Inc. has announced that it will close its Clarksville, Va., wool combing plant around late June. The company has reached an agreement in principle with Chargeurs Wool to commission comb its wool top requirements at the time of the Clarksville plant's closure.

As stated in a memo, Burlington will continue to act as a buyer of greasy wool as it still has a viable worsted wool fabric business to support.

The reorganization is part of the company's initiatives to modify its business model while restructuring under the Chapter 11 bankruptcy filing announced in November. The reorganization will result in the sale or closing of three other U.S. business locations in Mount Holly, N.C., Stonewall, Miss., and Halifax, Va., The denim garment operation in Aguascalientes, Mexico will also close.

The company estimates a loss of approximately 2800 jobs in the United States and 1200 jobs in Mexico, plus additional capacity reductions at its Raeford, N.C. plant and company-wide overhead reductions.

"We deeply regret the loss of jobs resulting from these actions," said George W. Henderson III, Burlington chairman and chief executive officer.

"Continued pressures from foreign imports and unfair trade practices coupled with slowing and uncertain economic conditions have made it necessary for us to further reduce our U.S. capacity. We recognize the increasing global nature of our industry, but we strongly oppose unfair trade that impacts U.S. jobs. We continue to lobby for legislation that enforces fair trade and supports a competitive U.S. textile industry."
The company will continue to make synthetic and wool products at its locations in Raeford, N.C., Hurt, Va., and Yecapixtla, Mexico.