14300 Fri, 04/18/2008 - 12:27pm
NEW YORK–Dan River is close to liquidating, according to former company executives and sales representatives.
The sources said GHCL, Dan River’s India-based parent, could file in U.S. District Court for the manufacturer’s liquidation in the next few days.
“GHCL has decided it doesn’t want to be involved,” one former Dan River executive said. Calls to Dan River’s offices here and in Danville, Va., have not been returned.
The company, which at one time was among the nation’s top producers of sheets and bedding and an originator of the bagged bedding concept, has experienced financial problems for several years. It filed for Chapter 11 bankruptcy protection in March 2004 and emerged from Chapter 11 in February 2005. It was purchased by GHCL in early 2006.
Last month, Herb Briggs, Dan River’s president, left the company to join Hunt Private Equity Group in Dallas.