June 16, 2006
June 16, 2006 -- Avondale Mills has agreed to sell three of its spinning plants to North Carolina-based Parkdale Mills for $28 million.
Last month, Avondale announced it anticipated closing its doors in July. The company cited unfair global competition and a disastrous train wreck next to one of its Graniteville, S.C., plants. At that time, Stephen Felker, Jr., manager of corporate development, said the company was also exploring other options including the possibility of selling all or part of the company.
"This is great news. The acquisition by Parkdale gives us the opportunity to preserve 700 jobs," Felker said, noting the three plants - all linked ring-spinning plants - include Alexander City in Alexander City, Ala.; Coosa in Rockford, Ala.; and Townsend in Graniteville. "These are highly automated and modern facilities that produce high-quality, ring-spun yarn, which is in particularly high demand now. We've put a lot of money into these plants, and they are a good fit with what Parkdale does," he added.
Felker said Avondale is still looking for buyers for other company facilities, but he was not optimistic they would come forward.