Investors acquire Weave Corp.
By Gary Evans -- Furniture Today, February 15, 2010
HACKENSACK, N.J. —
Investors led by American Silk Mills President John Sullivan have purchased fabric maker Weave Corp. for $1.9 million.
The sale closed last Tuesday, several days after a federal court judge approved the transaction, according to John Russell, a senior consultant at Pittsburgh-based Meridian Group, which handled the sale while Weave was in receivership.
Weave, which had been in operation since the 1950s and operated a plant in Denver, Pa., defaulted on almost $9 million in loans to PNC Bank in Pittsburgh and closed briefly until the court ordered it to stay in operation.
The new company will operate as Weave Textiles LLC. Sullivan could not be reached in his New York office last week. Russell said Weave was bought by the Sullivan group and not by American Silk.
Russell said that the new owners intend to continue to run the facility in Denver, which now has about 35 employees — down from 180 a decade ago.
According to court documents, the $1.9 million purchase price is for equipment and inventory. The factory will be leased for up to 24 months, and Weave Textiles LLC will have an option to buy the property for $2.9 million.
American Silk makes medium-priced to upper-end decorative upholstery and drapery fabrics for the residential and contract markets.
The company's line includes silk, cotton, wool, rayon and polyester blends; novelty yarns in jacquard and dobby constructions; velvets and Sensuede.
Weave is a custom designer and weaver of yarn-dyed jacquard fabrics and also sells silks and Greenweave, a line of earth-friendly fabrics.
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Investors buy fabric maker Weave Corp.
Feb 11, 2010
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