Dixie Enters Sale-Leaseback Agreement for Adairsville Distribution Center

Dalton, GA, June 6, 2023-The Dixie Group has entered into an agreement for the sale and leaseback of its distribution facility in Adairsville, Georgia.

The company anticipates the transaction will close in Q3 2023. Upon closing the transaction, the company expects to recognize a significant gain in net income. The proceeds from this financing transaction will be used to significantly reduce the company's debt and increase availability of funds under its existing lines of credit.

The agreement is in accordance with plans previously announced in the company's Form 10-Q filing for the first quarter of the current year. The closing of the sale-leaseback agreement is subject to the prospective purchaser's rights of inspection and approval. Other terms of the agreement were not announced.