Quaker Fabric to close?
Lenders may freeze funds, company says
By Susan M. Andrews -- Furniture Today, July 9, 2007
Fall River, Mass. — Quaker Fabric had been struggling for some time, but few competitors and customers were prepared for the major upholstery fabric supplier's announcement last week that it may not reopen after its summer shutdown, scheduled to end July 15.
The company said it will likely shut down and liquidate because it can't meet the terms of its lending agreements, and consequently lenders will only advance funds on a discretionary basis.
In a press release, Quaker said there is "significant uncertainty" about whether the company will have enough liquidity to continue operating. Larry Liebenow, president and CEO, and other company officials did not return phone calls last week.
Publicly held Quaker has reported losses in 12 consecutive quarters, most recently a loss of $5.1 million on sales
