Pillowtex to Close Facilities in Newton and Rocky Mount, N.C.

Apr 24, 2001, 01:00 ET from Pillowtex Corporation

    KANNAPOLIS, N.C., April 24 /PRNewswire Interactive News Release/ --
     Pillowtex Corporation (OTC Bulletin Board:   PTEXQ) announced today that it
 will close two North Carolina manufacturing facilities by June 30, 2001.
 Employees at the Newton Plant, a blanket yarn manufacturing facility, and the
 Rocky Mount Plant, a cut-and-sew operation, were notified of the upcoming
 closures today.  The closures come in response to changing market and economic
 conditions and affect a total of 290 employees.
     The executive director of operations for Pillowtex, Bob Haase, said, "We
 regret the closing of these facilities and the impact it will have on the
 employees, their families and the surrounding communities.  However, we must
 assure the longevity of our overall business by taking steps that will allow
 us to service our customers more effectively and, in turn, maintain the
 Company's viability in the very competitive home textiles industry."
     Part of Pillowtex since 1995, the Newton Plant employs 110 management and
 hourly employees.  Haase attributed the closing of the facility to the
 Company's pending sale of its Blanket Division.  "Potential buyers did not
 include an offer for purchase of the Newton facility.  Yarn produced there is
 used exclusively in the manufacturing of blankets and is not usable in our
 bedding and bath manufacturing," Haase said.
     The Rocky Mount plant currently has 180 employees.  Part of Pillowtex
 since 1987, the plant has produced decorative bedding exclusively for Ralph
 Lauren.  Haase said the Ralph Lauren license expires June 30, 2001.
     Pillowtex is working with employees affected by the closures.  "Our goal
 is to make certain that all employees impacted by the closures at Newton and
 Rocky Mount have immediate access to information they need to help them and
 their family members," said Don Mallo, vice president, human resources.
     To assist employees affected by the closings, the company is working
 closely with the North Carolina Employment Security Commission, which will
 have representatives on-site at both facilities to provide direct access to
 claims filing, information about possible job opportunities, job retraining
 and other unemployment benefits.  Pillowtex benefits managers at each location
 will help with questions concerning company benefits.
     Pillowtex Corporation, with corporate offices in Kannapolis, N.C., is one
 of America's leading producers of household textiles including towels, sheets,
 rugs, blankets, pillows, mattress pads, feather beds, comforters and
 decorative bedroom and bath accessories.  The Company's brands include Cannon,
 Fieldcrest, Royal Velvet, Charisma and private labels.  The Company filed a
 voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy
 Code on November 14, 2000.
     Pillowtex employs approximately 12,000 people in its network of
 manufacturing and distribution facilities in the United States and Canada.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X11665032
 
 

SOURCE Pillowtex Corporation
    KANNAPOLIS, N.C., April 24 /PRNewswire Interactive News Release/ --
     Pillowtex Corporation (OTC Bulletin Board:   PTEXQ) announced today that it
 will close two North Carolina manufacturing facilities by June 30, 2001.
 Employees at the Newton Plant, a blanket yarn manufacturing facility, and the
 Rocky Mount Plant, a cut-and-sew operation, were notified of the upcoming
 closures today.  The closures come in response to changing market and economic
 conditions and affect a total of 290 employees.
     The executive director of operations for Pillowtex, Bob Haase, said, "We
 regret the closing of these facilities and the impact it will have on the
 employees, their families and the surrounding communities.  However, we must
 assure the longevity of our overall business by taking steps that will allow
 us to service our customers more effectively and, in turn, maintain the
 Company's viability in the very competitive home textiles industry."
     Part of Pillowtex since 1995, the Newton Plant employs 110 management and
 hourly employees.  Haase attributed the closing of the facility to the
 Company's pending sale of its Blanket Division.  "Potential buyers did not
 include an offer for purchase of the Newton facility.  Yarn produced there is
 used exclusively in the manufacturing of blankets and is not usable in our
 bedding and bath manufacturing," Haase said.
     The Rocky Mount plant currently has 180 employees.  Part of Pillowtex
 since 1987, the plant has produced decorative bedding exclusively for Ralph
 Lauren.  Haase said the Ralph Lauren license expires June 30, 2001.
     Pillowtex is working with employees affected by the closures.  "Our goal
 is to make certain that all employees impacted by the closures at Newton and
 Rocky Mount have immediate access to information they need to help them and
 their family members," said Don Mallo, vice president, human resources.
     To assist employees affected by the closings, the company is working
 closely with the North Carolina Employment Security Commission, which will
 have representatives on-site at both facilities to provide direct access to
 claims filing, information about possible job opportunities, job retraining
 and other unemployment benefits.  Pillowtex benefits managers at each location
 will help with questions concerning company benefits.
     Pillowtex Corporation, with corporate offices in Kannapolis, N.C., is one
 of America's leading producers of household textiles including towels, sheets,
 rugs, blankets, pillows, mattress pads, feather beds, comforters and
 decorative bedroom and bath accessories.  The Company's brands include Cannon,
 Fieldcrest, Royal Velvet, Charisma and private labels.  The Company filed a
 voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy
 Code on November 14, 2000.
     Pillowtex employs approximately 12,000 people in its network of
 manufacturing and distribution facilities in the United States and Canada.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X11665032
 
 SOURCE  Pillowtex Corporation