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Burlington Reorganizes Apparel Fabrics Group

Burlington ReorganizesApparel Fabrics GroupAs part of its strategy to restructure the company under Chapter 11 of the U.S. Bankruptcy Code and modify its business model, Greensboro, N.C.-based Burlington Industries Inc. is reorganizing its apparel fabrics group.Burlington will market and sell all apparel products solely through Burlington WorldWide. Product offerings will be expanded with sourced products from Burlington WorldWides international mill partners.The company also will sell or close plants in Stonewall, Miss.; Mount Holly, N.C.; Halifax, Va.; and Clarksville, Va.; and its denim garment operation in Aguascalientes, Mexico. Capacity reductions at its Raeford, N.C., plant and overhead reductions company-wide are planned as well. Approximately 4,000 U.S. and Mexican employees will lose their jobs.Manufacture of wool and synthetic products will continue at the companys facilities in Cordova and Raeford, N.C.; Hurt, Va.; and Yecapixtla, Mexico. Denim production will be moved to Yecapixtla or to the companys plant in Navsari, India. The reorganization is expected to be completed in two to six months. February 2002