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Pillowtex says sale to GGST is final |
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2003-11-6
Pillowtex Corp. has closed on its previously announced deal to sell substantially all of its assets to GGST LLC, a group of companies that specialize in liquidations, the bankrupt textile firm said Wednesday.
According to a sale agreement approved by a federal bankruptcy judge, GGST decided to pass on buying Pillowtex factories in Eden and Kannapolis, N.C., Dallas, Texas; Hanover, Pa.; and Tunica, Miss.
"GGST''s election to exclude these facilities resulted in a $7 million reduction in the previously announced purchase price, bringing the total purchase price received by Pillowtex to $121 million," the Kannapolis-based towel and sheet maker said in a statement.
GGST retained its rights to the equipment located at all of Pillowtex''s plants, including the excluded facilities, the statement said.
Pillowtex will try to sell the excluded plants, the company said.
Last month, GGST won the bidding for the bankrupt company with an offer of $128 million in an auction in a federal bankruptcy court in Delaware. At the time, the consortium reiterated its plans to sell - rather than operate - the company.
In July, Pillowtex closed its 16 plants in North America and laid off 7,650 workers. North Carolina lost 4,800 of those positions and Virginia lost nearly 1,000 jobs.
GGST is made up of Gibbs International, based in Spartanburg, S.C.; SB Capital Group, based in Long Island, N.Y.; Gordon Brothers Retail Partners LLP in Boston; and Tiger Capital Group in Westlake Village, Calif.
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