New York, NY, May 14--Pillowtex Corp., maker of Cannon, Fieldcrest and Royal Velvet blankets and towels, said it is reviewing its 2002 financial statements and might report an additional $2 million loss.
Pillowtex said its audit committee asked it to review how it accounts for discounts, rebates and co-op advertising that the Kannapolis, North Carolina-based company used to promote its products.
Pillowtex emerged from bankruptcy protection on May 24, 2002, after struggling with heavy competition from cheap imports in the depressed textile industry. It said it expects the reaudit to result in an additional $700,000 of losses for the five months leading up to its emergence, and an additional $1.3 million of losses for the seven months after it emerged.
The company said it lost $69.2 million in the five months ending June 1, 2002, and $27.6 million in the seven months ending Dec. 28, 2002.
Pillowtex on March 18 said it promoted Michael Gannaway, a former Sara Lee Corp. executive, to chairman and chief executive, replacing David Perdue, who was leaving the company. It also said it had retained Credit Suisse First Boston to help it review "strategic alternatives."
