Parkdale To Purchase Three Avondale Plants
Gastonia, N.C.-based Parkdale Mills
Inc. has agreed to purchase three spinning plants from Monroe, Ga.-based Avondale Mills Inc. for
$28 million. The transaction is expected to close June 30, 2006.
Last month, Avondale announced it anticipated closing its doors July 25, 2006, potentially putting 4,000 associates out of work. The company cited unfair global competition and a disastrous train wreck next to one of its Graniteville, S.C., plants that killed several company associates and caused extensive damage to machinery and equipment in the plant. At that time, Stephen Felker Jr., manager, corporate development, said the company was also exploring other options including the possibility of selling all or part of the company.
“This is great news. The acquisition by Parkdale gives us the opportunity to preserve 700 jobs,” Felker said, noting the three plants — all linked ring-spinning plants — include Alexander City in Alexander City, Ala.; Coosa in Rockford, Ala.; and Townsend in Graniteville. “These are highly automated and modern facilities that produce high-quality ring-spun yarn, which is in particularly high demand now. We’ve put a lot of money into these plants, and they are a good fit with what Parkdale does,” he added.
Felker said Avondale is still looking for buyers for other company facilities, but he was not optimistic they would come forward.
June 13, 2006