One of the nation's largest floor covering manufacturers has filed for Chapter 11 protection in federal bankruptcy court.
Beaulieu Group LLC, which has a manufacturing plant in Gainesville, said in a press statement the paperwork was filed in federal bankruptcy court in Rome in northwest Georgia on Monday.
The move comes after Beaulieu suffered losses from its traditional carpet business.
In a press statement, the company said its existing lenders, which are owed between $50 million and $100 million, have agreed to continue to support the company by providing debtor-in-possession (DIP) financing. That debt will be combined with cash from operations to ensure the company continues operations while it restructures its debt and finances.
"Beaulieu family members and our board of managers believe pursuing a restructuring through Chapter 11 is the best path forward at this time," said Michael Pollard, president of Beaulieu Group LLC. "We have evaluated alternatives to address Beaulieu's capital structure, and believe that restructuring through the Chapter 11 process will best position all of Beaulieu Group LLC's businesses for future success."
Pollard said Beaulieu is changing the carpet industry's business model and client base to sustain business.
"This restructuring will allow us to invest in the business going forward and emerge a stronger organization," Pollard said.
Approximately 280 employees work in the Gainesville facility. The company said those employees should not see any immediate changes in business operations.
The 40-year-old company was once the third biggest carpet maker in America, according to press information.
http://accesswdun.com/article/2017/7/560587/beaulieu-files-for-chapter-11-bankruptcy-employees-should-see-no-immediate-changes