Monticello, ARK, February 10--Burlington Rug Corp. announced earlier this week that the company is shutting down in 60 days.
"We are in the process of winding down the operation of Burlington Rugs," said Gary Brookshire, CEO of Burlington. "It will be an orderly wind down and our primary focus is to make sure that our loyal retailers are kept with product. We are actively working to transition with other manufacturers to make sure that they can continue to enjoy the styles that have been selling so well."
Prudential Capital Partners acquired ownership of the company from Yanoor Corp. and owner Saeid Korhani last August. Brookshire said that the new management had strengthened the business since then but could not overcome the existing debt burden and rumors in the marketplace that the company may file for bankruptcy.
"We were actively trying to form some business combinations and they did not work out," Brookshire said. "I can't foresee anything working out now."
The company operated a one-million-square-foot manufacturing facility and employed 207 workers.
