Log In | Register
— Hanesbrands Inc., which makes underwear and hosiery, on Thursday said it is selling most of its yarn manufacturing operations to Parkdale, a yarn manufacturer based in North Carolina.
Financial terms of the transaction were not disclosed. The sale should close in the fourth quarter, Hanesbrands said.
Hanesbrands plans to get all of its yarn from large-scale yarn suppliers.
"Producing our own yarn, when more than adequate large-scale supplies exist, serves no strategic purpose," Chief Executive Richard A. Noll said in a statement.
Parkdale will operate three of the four production plants in Georgia, Tennessee and Virginia, which have 780 employees combined.
Hanesbrands will close the fourth facility in Sanford, N.C. The facility has about 150 employees.
Hanesbrands also plans to close a cotton warehouse in Advance and Clemmons, both in North Carolina and have 25 employees combined.
The company expects the sale to bolster its balance sheet by $100 million within six months from working capital improvements, lower raw material requirements, reduced inventory and sale proceeds.
The company said that employees affected by the facility closings will receive severance and transition assistance.
