UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
March 9, 1998
DELTA WOODSIDE INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
SOUTH CAROLINA 0-10095 57-0535180
(State or other jurisdiction of (Commission (I.R.S. Employer
Incorporation or organization) File Number) Identification No.)
233 North Main Street
Hammond Square, Suite 200
Greenville, South Carolina 29601
(Address of principal executive offices) (Zip Code)
864\232-8301
Registrant's telephone number, including area code
Not Applicable
Former name, former address and former fiscal year, if changed since
last report.
Item 5. Other Events.
March 9, 1998 Douglas J. Stevens
Greenville, South Carolina
Delta Woodside Industries, Inc. (NYSE-DLW) announced today
that it is withdrawing from the circular knit fabrics business, which
has operated under the name of Stevcoknit Fabrics Company, and will
be selling or closing and liquidating its two knitting, dyeing and
finishing plants in Wallace, North Carolina, and its yarn spinning
plant in Spartanburg, South Carolina. Stevcoknit Fabrics Company has
previously provided a substantial supply of yarn to the Company's
Delta Apparel activewear division and Stevcoknit's yarn plant in
Edgefield, South Carolina, will now produce this yarn for the Delta
Apparel division.
Delta Woodside also announced that it has decided to sell its
Nautilus International fitness equipment division, based in
Independence, Virginia, and has retained an investment banking firm
to handle the sale.
In connection with these decisions, Delta Woodside will take
restructuring and other related charges in its March quarter,
currently estimated to be in the range of $32 million. In the
Company's last fiscal year, the Stevcoknit and Nautilus divisions
recorded a combined operating loss of $14.7 million.
In commenting on the Company's decisions, E. Erwin Maddrey II,
President and Chief Executive Officer, said, "The decision to close
Stevcoknit has been extremely difficult for us to make. We are
keenly aware of the hardships which this decision will create for the
many loyal and dedicated Stevcoknit employees. However, our knit
fabrics business has been unprofitable for many years. We have now
reached the conclusion that there is little prospect for improvement,
and Delta Woodside can no longer afford to take these losses. We
will make every effort to place the employees in these three plants
in other jobs in the Company, and to work with the communities
affected to try to use our manufacturing plants in these communities
for the best benefit of the communities and the employees.
Page 2
"In deciding to sell Nautilus, we made the decision to focus
on our core textile and apparel businesses. Nautilus is a great
company with a great name and we are confident that this company will
be purchased by a buyer who can focus entirely on the exciting area
of health and fitness. We believe that our loyal and dedicated
Nautilus employees will prosper under new ownership.
"Having made these difficult decisions, we can now concentrate
on our well positioned and highly profitable Delta Mills woven
fabrics division, our low cost activewear division, and our popular
Duck Head branded apparel division. Such focus should significantly
enhance the profitability of Delta Woodside and improve the Company's
prospects going forward."
Forward-looking statements in this press release are subject
to a number of uncertainties beyond the control of the Company.
Factors that could cause actual results to differ materially from the
Company's estimates and projections include the inability of the
Company to sell the Stevcoknit assets or the Nautilus business on
satisfactory terms and in a timely manner and the other factors
described in the Company's Annual Report on Form 10-K for the fiscal
year ended June 28, 1997.
Delta Woodside Industries, Inc., headquartered in Greenville,
South Carolina, manufactures and markets a wide variety of textile
and apparel products.
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly
authorized.
DELTA WOODSIDE INDUSTRIES, INC.
(Registrant)
Date March 9, 1998 /s/ Douglas J. Stevens
Douglas J. Stevens
Controller and Assistant
Secretary
