“Lees is an extremely successful, vibrant and growing division, and (Burlington’s) filing was in no way related to the state of the Lees Carpets' business,” McCallum said in a written statement. “Rather, it was a result of tough economic conditions, low-cost imports and the shift in consumer confidence following the September 11th atrocity, which have adversely affected the textile fabric divisions of Burlington Industries.”
For its part, McCallum said Lees will “continue to pursue a growth strategy and expand upon the record growth we have experienced for five consecutive years.” He also noted that the top strategy of the restructured Burlington Industries will be to build upon the successful Lees division.
“At Lees, however, there will be no restructuring or reorganization,” he explained. “It will be ‘business as usual.’”
McCallum also underscored Lees’ support of Burlington’s initiatives and expressed confidence in the parent company’s ability to emerge from Chapter 11 protection as “a stronger, more viable company.”