Burlington files for reorganization
The emerging business model will focus on building Lees Carpets business, expanding global sourcing partners and leveraging styling and technology capabilities internationally through Burlington WorldWide Limited, providing performance and innovation through technology developed by Nano-Tex LLC, and improving manufacturing in its North American operations.
George W. Henderson, III, chairman and CEO, commented, "Our Lees Carpets business continues to serve the market with innovative flooring solutions and industry firsts. We are creating a more flexible and responsive company capable of meeting the diversified and ever changing needs of our customers."
The voluntary petitions for reorganization were filed in the U.S. Bankruptcy Court for the district of Delaware. International operations, joint venture partnerships, Nano-Tex LLC, and Burlington WorldWide Limited were not included in the filing.
Burlington Industries also announced it has received a commitment for a facility of up to $190 million in debtor-in-possession (DIP) financing underwritten by J.P. Morgan Chase & Co., which, subject to court approval, will augment the company's liquidity to provide adequate funding for operations during the reorganization period.