Burlington Posts Loss
Greensboro, NC, August 6--Textile company Burlington Industries Inc. reported Wednesday a narrower net loss of 5 cents a share for the third quarter ended June 28, compared with a loss of 21 cents a share for the same period a year earlier.
In its Form 10-Q filed with the Securities and Exchange Commission, the company reported $2.8 million loss for the most recent period on net sales of $204.7 million. For the comparable period in 2002, Burlington's net loss amounted to $11.2 million on sales of $269.7 million, including a $12.1 million provision for restructuring and impairments.
Burlington's loss before income taxes for the third quarter was $1.8 million, versus loss $19.2 million in the 2002 quarter.
Burlington, which has been in Chapter 11 since November 2001, recently received bankruptcy court approval to sell substantially all its assets to buyout firm W.L. Ross & Co. for about $614 million and assumption of some liabilities. Mohawk Industries Inc. will then buy the company's carpet business from Ross.
According to the company's reorganization plan centered on the Ross deal, unsecured creditors will see a return of about 42% of their claim against the company. The company has said it expects the plan to become effective in October if creditors approve it.
Related Topics:Mohawk Industries