Blumenthal in Ch. 11
Gary Evans -- Furniture Today, November 24, 2008
Fabric supplier Blumenthal Print Works here and its Blumenthal Mills division in Marion, S.C., have filed a joint motion for Chapter 11 protection in U.S. Bankruptcy Court.
The family-owned company, whose main operation is a jacquard damask weaving plant in Marion, said in court documents that it had fewer than 50 creditors, assets between $1 million and $10 million, and liabilities of $10 million to $50 million.
Blumenthal Prints works is a weaver of home decorative fabrics, largely serving the home furnishings and decorative fabrics industries. The company is a longtime supplier of mattress ticking to major manufacturers, and sells jacquard upholstery to the furniture, recreational vehicle and hospitality industries.
Products made by the South Carolina mill are sold via Blumenthal Print Works. The company also imports products from China.
According to court documents, the company has suffered from a decline in orders, especially mattress ticking. One reason is the advent of one-sided mattresses, which use 30% less ticking. The company also said it had been affected by imports from China that have resulted in lower prices at retail.
A key creditor to the company is Whitney National Bank, owed around $20 million on a $25 million line of credit issued in 2004.
Lists of unsecured creditors were filed separately for Blumenthal Mills and Blumenthal Print Works, with the bulk owed by Blumenthal Mills. According to documents, the South Carolina mill owes over $22 million to its top 20 unsecured creditors.
Industry companies among the Top 10 creditors include Unifi Inc., owed $255,054; Monarch Knitting Machinery, $208,770; Bostik, $140,478; Akra Polyester, $125,258; Basell USA, $95,048; Dillon Yarn Corp., $92,267; Drake Extrusion, $91,672; and Muehlstein, $86,473.
Bluementhal Print Works lists Blumenthal Print Works Inc., Defined Bene, C/O Equitas Capital Advisors, as its largest unsecured creditor, at $91,966.
The mill employs 220 workers and the Print Works 39.
The family-owned company was founded here in 1924 and is in its third generation of family management under the direction of Harry J. Blumenthal Jr.
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