Kannapolis, July 30--Towel and bedding manufacturer Pillowtex Corp., which filed for Chapter 11 bankruptcy protection on Wednesday, is selling most of its assets to a consortium of groups that mostly engage in retail liquidations.
Pillowtex, which said it terminated 6,450 of its 7,650 workers and closed 16 plants, said it would sell most assets to a private group called GGST LLC, subject to bankruptcy court approval.
A person familiar with the company's plans said the group will buy the Pillowtex brands, 13 of its 16 plants and its equipment for $56 million.
GGST is a new consortium composed of SB Capital Group, Gibbs International, Gordon Brother Retail Group and Tiger Capital Group, Pillowtex said. In a statement, the group said it will sell the assets to other buyers.
"GGST LLC will not operate any portion of Pillowtex, and will make every effort to sell Pillowtex assets in a way that will allow for the continuation of operations when and where possible," it said.
Gibbs International bills itself as "a leader in the pre-owned textile machinery global market," on its Web site. SB Capital Group specializes in retail asset dispositions, according to its Web site. Gordon Brothers is well known in the industry for advising on retail liquidations. Information on Tiger Capital could not immediately be obtained.
