THOMASTON, Ga., June 19 /PR Newswire/ — Thomaston Mills, Inc.(OTC Bulletin Board: TMSAE.OB,
TMSBE.OB) announced today that it has filed a voluntary petition for reorganization under Chapter
11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Middle District of Georgia at
Macon.During the bankruptcy proceedings, the Company expects to continue certain operations while
seeking a purchaser for all or part of its assets under court protection from creditors. “The
decision to file a Chapter 11 petition was an extremely difficult one, but we believe it is the
only alternative that may provide the breathing space and relief necessary to find a purchaser for
the Company, or, if none can be found, an orderly wind-down of the Company’s operations,” said
A.William Ott, Acting President and Chief Executive Officer of Thomaston Mills.As part of recent
efforts to reduce the Company’s operating expenses and overhead costs during its search for a
purchaser, the Company last week ceased operations at its Peerless manufacturing facility in
Thomaston, Georgia,thereby discontinuing the spinning and weaving operations for its home
furnishings lines. This shut-down has resulted in the furlough of approximately 540 employees who
worked at the Peerless facility. “We deeply regret the hardship that these changes will cause to
many of our employees who have been loyal to Thomaston Mills over the years,” said Mr. Ott.
Thomaston Mills operates three textile plants in the Thomaston, Georgia area with approximately 900
employees. The Company produces sheets,pillowcases and comforters for retail customers, and also
produces textiles for the home furnishings and piece dyed markets. FORWARD-LOOKING STATEMENTS:
Certain of the above statements contained herein constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different from any future
results, performance or achievement sexpress or implied by such forward-looking statements. Such
factors include,among other things, business conditions, volatility of commodities markets,ability
to control operating costs, developing successful new products and maintaining effective pricing
and promotion of its products.SOURCE Thomaston Mills Web Site: http://www.thomastonmills.com
Copyright PR Newswire
