Unifi consolidating N.C. dyeing operations
By Furniture Today Staff -- Furniture Today, April 22, 2007
Greensboro, N.C. — Yarn producer Unifi is closing its polyester dyeing plant in Mayodan, N.C., and consolidating dyeing operations at its nearby Reidsville facility.
When the consolidation is complete this summer, the company said it will explore a sale of the Mayodan plant.
In a filing with the Securities and Exchange Commission, Unifi said the Mayodan property was valued on its books at more than it was worth.
As a result, the company will record a pretax impairment charge of $4.4 million in its third quarter to write down the property's value.
Unifi also will take a $3 million charge to write down the value of three nylon making plants in Madison, N.C., which it has been unable to sell, as well as a $5.5 million charge to write down the value of equipment stored in Madison that also remains unsold after a year.
The company said it will cut its asking price for the plants and machinery and continue to seek a sale.
Unifi also said it is owed about $4.8 million by Joan Fabrics, one of its largest customers and which filed for Chapter 11 bankruptcy protection April 10.
Unifi expects to take a pretax bad debt charge of about $2.8 million in its third quarter, in addition to the $2 million it previously wrote off.
And it expects to write-down about $700,000 worth of inventory that was scheduled to ship to Joan, the SEC filing said.
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