WILMINGTON, Del.–Several days after sources said the company would be liquidated, Dan River Holdings filed for Chapter 11 bankruptcy protection on April 20.
Reports surfaced last week saying that the company, a division of India-based GHCL, would be liquidated perhaps as soon as early this week. The filing made at U.S. Bankruptcy Court here lists the city of Danville, Va., where Dan River’s headquarters is located, as the largest unsecured creditor, at nearly $2.3 million. Best Manufacturing Group, another division of GHCL, is the second largest at about $1.5 million.
Also on the list of the 30 largest unsecured creditors is Daniel Hammer, a former Dan River executive who left the firm earlier this year, at $550,000.