Unifi To Close Mayodan Facility Write-Down Facility And Equipment Values
An appraisal of the Mayodan property found that it was recorded on Unifi’s books as more than it was worth. As a result, the company will record a pre-tax impairment charge of $4.4 million in the third quarter 2007 to write down the property’s value. Unifi also will take a $3 million charge to write-down the value of three facilities in Madison, N.C., that it has been unable to sell. A $5.5 million charge will be taken to write down the value of equipment stored at the Madison facility it also has been unable to sell.
In addition, Unifi expects to take a $2.8 million charge on receivables owed to it by Joan Fabrics Corp., which has filed for Chapter 11 bankruptcy (See “Joan Fabrics Files For Chapter 11, www.TextileWorld.com). The $2.8 million charge would be in addition to $2 million owed by Joan Fabrics previously written off. Unifi will also take a $700,000 charge on inventory scheduled for shipment to Joan Fabrics.
April 10, 2007