Dan River announces more cuts, including Georgia warehouse

<p>Dan River Inc. will close plants and cut 440 jobs in Tennessee and Georgia, shifting most of the textile jobs to its hometown operation.</p><p>This move better utilizes available space in Danville and consolidates all apparel fabric weaving closer to other division operations, said Jim Martin, president of the companys apparel fabrics division.</p><p>Dan River, which makes apparel fabrics and packaged bedroom linens, has been grappling with losses as the textile industry continues to struggle with a flood of imports. So far this year, the U.S. textile and apparel industries have shed tens of thousands of jobs.</p><p>This week, Dan River announced a loss of $103.5 million on $103.7 million in sales in the third quarter ended Sept. 27.</p><p>An apparel weaving plant in Sevierville, Tenn., and warehouse in Juliette, Ga., will close in the next two to three months. Up to 200 jobs cut would be transferred to Danvilles weaving plant.</p><p>The company plans to take a $17 million charge related to the closings in the fourth quarter.</p><p>The job cuts bring Dan Rivers total employment to nearly 6,000 people, including 3,400 workers in Danville.</p><p>Joseph L. Lanier Jr., the companys chief executive officer, said he was disappointed with the companys performance in the third quarter. Sales fell almost 30 percent from $147.4 million in the year-ago period in part because retailers were cautiously managing their inventories.</p><p>Wed expected demand to improve in the third quarter, Lanier said. However, that did not happen.</p><p>Dan River executives expect losses to continue in the fourth quarter. But the first quarter could mark the beginning of a turnaround if sales in apparel fabrics rise due to new work with Levi Strausss Dockers brand.</p>