Textile factory to close

September 17, 2009 9:08:10 AM PDT
Hanesbrands Inc., which makes underwear and hosiery, on Thursday said will close a factory in Sanford - laying off 150 workers. It is also selling most of its yarn manufacturing operations to Parkdale, a yarn manufacturer based in North Carolina.

Financial terms of the transaction were not disclosed. The sale should close in the fourth quarter, Hanesbrands said.

Hanesbrands plans to get all of its yarn from large-scale yarn suppliers.

"Producing our own yarn, when more than adequate large-scale supplies exist, serves no strategic purpose," Chief Executive Richard A. Noll said in a statement.

Hanesbrands also plans to close a cotton warehouse in Advance and Clemmons, both in North Carolina and have 25 employees combined.

The company expects the sale to bolster its balance sheet by $100 million within six months from working capital improvements, lower raw material requirements, reduced inventory and sale proceeds.

The company said that employees affected by the facility closings will receive severance and transition assistance.

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