Avondale Mills Anticipates Shutdown

May 26, 2006 -- Avondale Mills, which calls itself the nation's oldest textile company, said Monday it is eliminating 2,000 jobs at its six Alabama plants.

G. Stephen Felker, Sr., chairman, president and CEO told employees in a letter that the company's 20 denim plants, yarn factories and sales offices will likely be closed July 25. He     cited as reasons ?trade practices of foreign countries that create unfair advantages for their textile industries? and the crowning blow dealt in January 2005 when a train carrying chlorine gas derailed next to one of its plants in Graniteville, S.C., spilling gas that killed several associates and caused almost immeasurable damage to the plant and its equipment.

Noting that ?the company is unable to continue as is,? Stephen Felker, Jr., manager, corporate development, said that although closing is the likely outcome, the company is considering several options including selling, restructuring or liquidating the company.

Altogether, Georgia-based Avondale which traces its roots in Alabama back to 1845 - will cut 4,000 jobs across the Southeast.