GREENSBORO, NORTH CAROLINA - Fabric maker Galey And Lord filed for Chapter Eleven bankruptcy reorganization Tuesday, a move the company said would not affect its operations. <br>
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The company said in a news release that the voluntary petitions for the Greensboro-based parent company and its U.S. subsidiaries were filed in U.S. Bankruptcy Court in New York. <br>
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The company, which employs about 5,800 people at plants in North Carolina, South Carolina and Georgia, manufactures denim for Levi Strauss And Company, which is its biggest customer. <br>
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Galey And Lord said that a poor retail environment, exacerbated by the September 11 terrorist attacks, created an economic climate that necessitated a restructuring of the company's debt. <br>
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The filing is the latest setback for a textile industry that has been doubled over by cheap imports and the recession. <br>
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Galey And Lord has reduced costs and downsized through plant closings over the past two years. <br>
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Galey And Lord said reorganization offered the most viable way to keep products rolling to its customers while being able to access new capital and restructure its balance sheet. <br>
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Galey And Lord is one of the largest U.S. producers of denim, accounting for 35 percent of its sales. <br>
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Galey And Lord also makes corduroy and is a major international manufacturer of workwear fabrics. It also sells dyed and printed fabrics for use in home fashions.
