Wilmington, DE, Oct. 9--Pillowtex Corp. won bankruptcy court approval yesterday of the $128 million sale of its assets to a group of liquidators.
Judge Peter J. Walsh at the U.S. Bankruptcy Court in Wilmington indicated he would approve the sale of Pillowtex's brands, plants and equipment to GGST LLC, a consortium that emerged as the winner of a ten-hour auction held in New York last Thursday.
GGST has said that it plans to sell Pillowtex's assets rather than operate them. That leaves in question whether any of its 16 sheet and towel factories in North America will reopen and whether any of the 7,650 workers who lost their jobs will be rehired.
481 Alabama workers lost their jobs when Pillowtex plants in Scottsboro and Phenix City ceased operations.
Approval for the sale came in spite of questions about the sale's fairness from the second-place bidder, a joint venture made up of Petters Company and PT Partners LLC.
