Spectrum Yarns shuts down

Supplier blames closure on credit crisis

Furniture Today Staff -- Furniture Today, October 3, 2008

KINGS MOUNTAIN, N.C. — Spectrum Yarns Inc., which supplied upholstery, bedding, automotive and other industries, has shut down, with the president of the company blaming the current credit crisis.

In a letter to the N.C. Dept. of Commerce announcing that about 200 people would be laid off at a plant here and a second facility in Marion, N.C., President C. Douglas Blanchard said that the company had been turned down by banks, a New York finance company and several private lenders.

"In the midst of this national crisis, Spectrum has been unable to obtain sufficient financing to keep operations going," Blanchard said. "Because all these efforts to obtain additional funding have failed, Spectrum has no cash available to fund operations."

He also said that efforts to partner with other companies failed.