Cone Mills dissenters gain 3 board seats
Susan M. Andrews -- Furniture Today, October 6, 2003
Greensboro, N.C. — Denim specialist Cone Mills confirmed last week that three new directors, supported by a group of directors opposing the proposed buyout of the company by W.L. Ross & Co., were elected to the company's 10-person board.
The dissenting group, headed by Marc Kozberg, hopes that he and the three new directors can influence the direction of the company, despite representing a minority on the board.
Cone, which has filed for Chapter 11 bankruptcy protection in connection with the buyout plan, has said the Ross deal likely would leave shareholders with nothing.
Ross, who has also agreed to buy textiles manufacturer Burlington Inds. for about $614 million, has offered about $90 million for Cone Mills.
At Cone's upholstery and decorative fabric division in Cliffside, N.C., President Larry Wright said last week the business model the division instituted this year is working well. Wright said the company had a successful showing at Summer Showtime, receiving a large number of placements for the upcoming October market.
"We delivered all the sample requests and all the fabric orders on time and we are just looking forward to things getting better for us," he said.
"Our business is growing and we expect Cone Jacquards to generate positive cash flow in the fourth quarter. I've been visiting with our customers in the past couple of weeks and we are getting good support from everyone," Wright said.
