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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): September 25, 1998
SPRINGS INDUSTRIES, INC.
(Exact name of registrant as specified in charter)
South Carolina 1-5315 57-0252730
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
205 North White Street, Fort Mill, SC 29715
(Address of principal executive offices) (Zip Code)
(803) 547-1500
(Registrant's telephone number, including area code)
Page 1 of 8
The Index to Exhibits is on Page 5
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TABLE OF CONTENTS TO FORM 8-K
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ITEM PAGE
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5. OTHER EVENTS 3
7. FINANCIAL STATEMENTS AND EXHIBITS 3
SIGNATURES 4
EXHIBIT INDEX 5
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Item 5. Other Events
As disclosed in its Form 10-Q for the first quarter of 1998, Springs
Industries, Inc. ("Springs" or "the Company") adopted a plan to close its Rock
Hill Printing and Finishing Plant. A pretax charge of $23.0 million was recorded
in the first quarter of 1998, which included an $11.3 million write-off of
plant and equipment, a $4.0 million accrual for anticipated severance costs
arising from the elimination of approximately 480 positions, and a $7.7 million
accrual for certain other anticipated expenses associated with the closing of
the facility. Included in the $7.7 million accrual was a provision to demolish
the facility, which was based on management's belief that finding a purchaser
for the facility was unlikely.
Subsequent to the adoption of the plan, a business contacted the
Company and expressed an interest in purchasing the facility. On September 25,
1998, shortly after the buyer was able to secure financing, the Company
consummated the sale of the facility. As a result of the sale, the Company will
reverse the accrual provision relating to idle plant costs and the demolition of
the facility by approximately $5.0 million, and record a gain on the sale of the
facility of approximately $2.8 million.
Separately, the Company has adopted a plan to modernize its Griffin,
Georgia, towel weaving and yarn operations. Springs announced in September 1998
that it will invest over $26 million to modernize and expand its Griffin Plant
No. 5, Production from Griffin Plant No. 1 will be consolidated into Plant No. 5
beginning in January 1999, with an expected completion by mid-1999. On September
30, 1998, the Company communicated to its associates that 300 positions will be
eliminated as a result of consolidating the two Griffin facilities. As a result
of the adoption of this plan, the Company will record a severance accrual of
approximately $1.1 million and an impairment charge of approximately $4.8
million in its third-quarter earnings.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
99 Additional Exhibits
99.1 News release issued by Springs on September 25, 1998.
99.2 News release issued by Springs on September 30, 1998.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
Springs has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SPRINGS INDUSTRIES, INC.
By: /s/James F. Zahrn
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James F. Zahrn
Executive Vice President
and Chief Financial Officer
Dated: October 9, 1998
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EXHIBIT INDEX
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Exhibit Page
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99 Additional Exhibits
99.1 News Release issued by Springs on September 25, 1998. 6
99.2 News Release issued by Springs on September 30, 1998.
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE September 25, 1998
SPRINGS ANNOUNCES SALE OF ROCK HILL PLANT
TO YORK PRINTING & FINISHING
ROCK HILL, S.C. _ Springs Industries today announced the sale of its
Rock Hill Printing and Finishing Plant to York Printing & Finishing of York,
S.C. The terms of the sale were not disclosed.
York Printing & Finishing was founded by Bonnie Watts, president, in
1978. York Printing currently operates a plant in York, S.C., that prints fabric
for the apparel and specialty industry.
The sale includes the majority of the plant facility and property
located in downtown Rock Hill bounded by Stewart Avenue, White Street and the
former Laurel Street, involving approximately 925,000 square feet of plant space
on approximately 23.5 acres. Springs will retain the warehouse facility located
southeast of Laurel Street. In addition, Springs will lease back from York
Printing office and warehouse space that houses its retail fabrics marketing,
design and administrative center.
"We are pleased that this facility will have a new life and create
jobs," said Crandall C. Bowles, Springs chairman and chief executive officer.
"This plant has a long and proud history in the community and we wish the new
owners well. We especially thank Congressman John Spratt for his efforts to make
this sale a reality. It likely would not have happened without his active
involvement."
In February, Springs announced the closing of the 69-year-old plant
which it acquired from M. Lowenstein & Sons in 1985. Production at the facility
ended in late May. The plant finished and printed fabric for Springs' Retail and
Specialty Fabrics Division. Most of the production from the plant was
consolidated into Springs' more modern facility at Grace Complex in Lancaster.
Springs is a major supplier of retail fabrics, which are sold in stores for home
sewing and crafts.
As a result of the sale of the facility, Springs expects to report a
non-operating gain which will be included in its third quarter results.
Springs Industries (NYSE: Ticker symbol SMI) is a major manufacturer
and marketer of home furnishings and specialty fabrics with headquarters in Fort
Mill, S.C. The company operates facilities in 10 U.S. states and owns marketing
and distribution subsidiaries in Canada and Mexico.
www.springs.com
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EXHIBIT 99.2
[Springs Letterhead] News Release
Springs Industries, Inc. Contact: Betty Turner
P.O. Box 70 Director - Public Relations
Fort Mill, SC 29716 803/547-3738 office
704/362-0316 home
FOR IMMEDIATE RELEASE September 30, 1998
Springs to Consolidate Production
Invest $26 million in Spalding County
Fort Mill, S.C. -- Springs Industries, Inc. will consolidate and modernize
its Griffin, Ga., towel weaving and yarn operations as the second phase of its
previously announced $67 million towel manufacturing modernization program.
The company will invest over $26 million to modernize and expand its
Griffin Plant No. 5. Production from Griffin Plant No. 1 will be consolidated
into Plant No. 5 beginning in January 1999, with expected completion in
mid-1999. As the first phase of the program, Springs said last March it would
spend $40 million on new facilities and equipment at its Hartwell, Ga.,
operations, where construction is underway.
Springs' modernization plan includes adding 55,000 square feet of
manufacturing space for weaving and yarn storage at Plant No. 5, adding nearly
200 jobs. While closing Plant No. 1 will affect approximately 500 associates,
they will receive priority for vacancies at other Springs plants as turnover
allows. Other nearby Springs facilities include: Plant No. 2, Griffin Finishing
Plant, and the baby products plants located on Carver Road in Griffin and in
Jackson. Associates who are not offered other employment or who are awaiting a
position will be eligible for severance pay in addition to unemployment
compensation and all accrued benefits.
Site preparation for the expansion at Plant No. 5 is underway and
construction will begin soon. In addition to the equipment that will be
transferred from Plant No. 1, new state-of-the-art towel manufacturing
machinery will be installed. Plant No. 1, originally built in 1888, is outdated
and not suitable for modernization, according to Springs officials.
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"We are proud to significantly increase our commitment to Spalding County
with this $26 million investment," said Thomas B. Gardner, senior vice
president -- bath manufacturing. "By adding 200 jobs at Plant No. 5, combined
with openings and normal turnover at our five other area Springs facilities, we
expect to offer continued employment to most Springs associates. While we
understand the difficulties this decision may create for some of our people, we
are confident our investments in the Griffin community will make us more
competitive, and thereby enhance the strength of our entire business."
Springs entered the towel business in 1995 with the acquisition of Dundee
Mills. Springs Industries (NYSE: Ticker symbol SMI) is a major manufacturer
and marketer of home furnishings and specialty fabrics with headquarters in
Fort Mill, S.C. The company operates facilities in 10 U.S. states and owns
marketing and distribution subsidiaries in Canada and Mexico.
