From: ASAP
Aaron Feuerstein, Malden Mills Industries CEO and President, announced that the company is working with interested parties to file a plan of reorganization to successfully emerge from Chapter 11 protection. The plan is expected to be filed with the court by the end of August 2002. Malden Mills is best known as the innovators, manufacturers and marketers of Polartec(R) brand technical fabrics. Malden Mills and Polartec(R) products have continued to receive strong support from employees, customers, and consumers around the world resulting in growing earnings and a stronger balance sheet. The company is on track to meet the 2002 business plan, enabling Malden Mills to emerge from bankruptcy. Significant improvements have resulted from the restructuring of the business including more efficient manufacturing, faster product commercialization and a strengthening of the Polartec(R) brand.
Executive Vice President of Sales and Marketing, Cesar Aguilar stated, "Our customers stood by us through Chapter 11 because we remain the source for innovation in technical fabrics. Polartec(R) fabrics help bring new levels of performance to our customers' products and provide powerful differentiation in an increasingly competitive retail environment. Malden Mills is emerging as a more efficient, highly focused organization with one of the most valuable brands in our industry. 2003 is expected to be a strong year for Malden Mills with accelerating sales growth. As a team, we have worked extremely hard this past year to re-direct the company and are confident that the positive sales trend will continue for years to come."
The company filed Chapter 11 on November 29th, 2001 at the Federal Bankruptcy Court in Worcester, MA, Judge Joel Rosenthal presiding. The filing was necessitated by the cost of servicing bank debt. A number of factors contributed, including the high costs associated with rebuilding after the devastating December 11, 1995 fire. Company owner Aaron Feuerstein has continued to be recognized around the world for his example of corporate responsibility when he decided to rebuild in Lawrence, MA the day after the fire -- and pay idled employees during the process. Corporate responsibility to the employees, community and the environment continue to be the core values of Malden Mills.
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