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): June 5, 1996
BURLINGTON INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-10984 56-1584586
(State or other juris- (Commission (I.R.S. Employer
diction of incorpora- File Number) Identification No.)
tion)
3330 West Friendly Avenue, Greensboro, North Carolina 27410
(Address of principal executive offices) (Zip Code)
(910) 379-2000
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year,
if changed since last report)
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Item 5. Other Events
On June 5, 1996, the Company announced that it would close its
Knitted Fabrics division with production to be phased out over the succeeding
three month period. The division produces knitted fabrics for use in men's,
women's and children's sportswear and active wear and in occupational apparel,
including uniforms for employees in the fast food industry.
The division's assets include manufacturing plants in Wake Forest
and Denton, North Carolina, which will be closed. The division's plant in
Cramerton, North Carolina will continue to operate, and its production will be
utilized by Burlington Sportswear, a new business unit of the Company, announced
on June 5, 1996. An insignificant portion of the existing assets of the division
will be transferred to the Company's Statesville, North Carolina plant which
will provide certain manufacturing processes for the Burlington Sportswear
division. Receivables and inventories (not useable in ongoing businesses) will
be liquidated as the division's business is phased out, and the remaining assets
of the division, including the Wake Forest and Denton manufacturing facilities,
will be offered for sale.
For the Company's 1994 fiscal year ending October 1, 1994, the
Knitted Fabrics division had net revenues of $147.9 million and operating loss
before interest and taxes of $26.7 million. For the Company's 1995 fiscal year
ending September 30, 1995, the Knitted Fabrics division had net revenues of
$134.1 million and operating loss before interest and taxes of $17.9 million.
For the six months ending March 30, 1996, the Knitted Fabrics division had net
revenues of $58.8 million and operating loss before interest and taxes of $10.8
million.
The new Burlington Sportswear division will serve the better
men's sportswear and uniform markets, specializing in fine cotton fabrics for
casual shirts and pants.
Incorporated by reference herein are press releases of the
Company dated June 5, 1996 with respect to the foregoing.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99(a) Press release of Burlington Industries, Inc.
dated June 5, 1996.
99(b) Press release of Burlington Industries, Inc.
dated June 5, 1996.
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<PAGE>
SIGNATURES
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.
BURLINGTON INDUSTRIES, INC.
By /s/ CHARLES E. PETERS, JR.
Name: Charles E. Peters, Jr.
Dated: June 5, 1996 Title: Senior Vice President and
Chief Financial Officer
By /s/ AGUSTIN J. DIODATI
Name: Agustin J. Diodati
Dated: June 5, 1996 Title: Vice President and
Controller
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<PAGE>
EXHIBIT INDEX
Sequentially
Exhibit Numbered
No. Description Page
99(a) Press Release of Burlington
Industries, Inc. dated
June 5, 1996. 5
99(b) Press Release of Burlington
Industries, Inc. dated
June 5, 1996. 6
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Exhibit 99(a)
Date: June 5, 1996
Release: Immediately
Contact (Press): Dick Windham (910) 379-2303
Contact (Analysts): Jim Clippard (910) 379-2727
BURLINGTON TO CLOSE
KNITTED FABRICS DIVISION
Burlington Industries, Inc. (NYSE: BUR) announced today that it will
close its Knitted Fabrics division, with production to be phased out over the
next 2-3 months. Two of the division's three manufacturing facilities will be
closed, while the third will be utilized elsewhere within the company in a new
business unit. These steps will cause an estimated $20 million to $23 million
after-tax charge (or $0.32 to $0.37 per share) against results of Burlington's
1996 fiscal year, which ends on September 28, 1996.
Burlington President and CEO George Henderson said, "The Knitted Fabrics
division has been unprofitable for a number of years. Almost two years ago we
began an intensive effort to turn it around. We changed management, consolidated
operations and revitalized our product lines, but the division as a whole still
has not returned to profitability. In addition, we believe that the commodity
knits market will continue to be plagued by overcapacity and imported garments,
making sustainable profitability difficult going forward. As a result, we feel
that it is in our shareholders' best interests to close the division and devote
our resources to pursuing more attractive growth opportunities in other parts of
our company."
The Knitted Fabrics division, one of 9 divisions of Burlington
Industries, represents approximately 6 percent of the company's total sales. It
is headquartered in Greensboro. Its Wake Forest and Denton, NC facilities will
be phased out over the next 2-3 months. The "Lakewood" plant in Cramerton, NC
will continue to operate and its production will be utilized by a new business
unit being announced separately today.
Henderson said, " We deeply regret the impact of this decision on our
employees. We have a very talented and dedicated workforce, and they have given
their very best efforts to make the division successful. We will do our best to
assist them in making the transition to other opportunities."
Employees whose jobs are eliminated will get at least 60 days notice,
and will be entitled to severance and other benefits. They will also be given
priority consideration for any openings at other Burlington locations, and the
company will offer placement assistance.
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Exhibit 99(b)
Date: June 5, 1996
Release: Immediately
Contact (Press): Dick Windham (910) 379-2303
Contact (Analysts): Jim Clippard (910) 379-2727
BURLINGTON FORMS
NEW BUSINESS UNIT
Burlington Industries, Inc. (NYSE: BUR) announced today the formation of
a new division to be known as Burlington Sportswear. The division will serve the
better men's sportswear and uniform markets, specializing in fine cotton fabrics
for casual shirts and pants.
"We see an excellent opportunity for growth in the cotton casual
market," said George Henderson, Burlington's President and CEO. "Comfort,
fashion, and performance are very much in demand for both leisure and business
wear, and there is a growing need for the kind of higher-quality specialty
products that we will provide through this new division."
Chuck Cole has been named President of the Burlington Sportswear
division. Cole had 26 years of merchandising experience with the Burlington
Klopman Fabrics division before being named president of the Knitted Fabrics
division in September, 1994. (In a separate announcement, Burlington said the
Knitted Fabrics division will be closed.)
Cole said, "We are building this new business quickly, using our
marketing expertise to expand upon our proven products and better utilize
existing manufacturing plants. We will focus on better woven and knit products
to be sold to the rapidly growing casual men's sportswear and uniform markets.
We are very excited about the growth prospects for our customers and Burlington
Sportswear."
Cole also noted the new division will draw upon various manufacturing
resources within the company. For example, the division will utilize production
capacity at Burlington plants in Cramerton, NC and in Statesville, NC, where
approximately 110 new jobs will be added.
Burlington Sportswear will be one of nine divisions of Burlington
Industries, Inc. , which is one of the largest and most diversified
manufacturers of textile products in the world, with five divisions serving
apparel markets and four divisions serving interior furnishings markets.
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