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Burlington Reorganization Brings Changes

Burlington ReorganizationBrings ChangesAs part of Burlington Industries Inc.s reorganization under Chapter 11 of the U.S. Bankruptcy Code, the Greensboro, N.C.-based company has sold its residential upholstery business and its bath consumer products assets.Bacova Guild Ltd., High Point, N.C., a subsidiary of Ronile Inc., has acquired Burlingtons bath consumer products assets. The new business will operate as a division of Bacova, and will sell under the Bacova® Bath and other brand names.Tietex International Ltd., Spartanburg, has purchased Burlingtons residential upholstery fabric business. The acquisition includes Burlingtons Sheffield facility in Rocky Mount, N.C. Tietex expects to employ the majority of Sheffield employees.Tietex also plans to lease a portion of the weave capacity at Burlingtons Williamsburg plant in Matkins, N.C. Employees associated with upholstery production will be employed by Tietex.Tietex will use the Burlington House® brand name for upholstery fabrics.Springs Industries Inc., Fort Mill, S.C., has completed its acquisition of Burlingtons window treatments and bedding consumer products business (See Textile World News, April 2002). The purchase includes a manufacturing plant in Mexico. Springs also has received a license to use the Burlington House® and American Lifestyle® brand names. In addition, Burlington will supply finished products manufactured at its Reidsville and Stokesdale, N.C., facilities, as well as fabrics to be converted by Springs into finished products. July 2002