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Pillowtex Closes Facilities

PIllowtex Closes FacilitiesKannapolis, N.C.-based Pillowtex Corp. is to close its Newton blanket-yarn manufacturing plant and the Rocky Mount cut-and-sew plant, both located in North Carolina. The closures affect 290 employees.No offer was made to purchase the Newton plant in the pending sale of Pillowtexs Blanket Division. Because the yarns are not useable in other products manufactured by Pillowtex, the decision was made to close the plant. The Rocky Mount plant produces decorative bedding exclusively for Ralph Lauren, but this license expires at the end of June.We regret the closing of these facilities and the impact it will have on the employees, their families and the surrounding communities. However, we must assure the longevity of our overall business by taking steps that will allow us to service our customers more effectively and, in turn, maintain the companys viability in the very competitive home textiles industry, said Bob Haase, executive director of operations. June 2001