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Exhibit 99.1
FOR IMMEDIATE RELEASE December 6, 2000
FORT MILL, SC - Springs Industries, Inc. (NYSE:SMI) announced today it
would eliminate some production at its Katherine and Elliott plants in Chester
County, SC, in February 2001, affecting approximately 320 people.
"While we regret having to make the difficult decision to phase out
this production, we are going to work diligently to place every affected
associate into a job at other Springs facilities in the area," said William K.
Easley, senior vice president of Springs and president of textile manufacturing.
"By continuing to invest in modern technology and replace or eliminate more
costly manufacturing, we are able to produce more yarn and fabric at fewer
facilities and keep our domestic facilities competitive in this very demanding
industry."
Outdated yarn spinning will be eliminated at the Katherine and Elliott
plants. In addition, some narrow looms, which are not compatible with newer
fabrication equipment, will be phased down at the Katherine Plant.
The company will make every effort to provide jobs for associates,
including preference for job openings in nearby Springs facilities. All job
openings will be posted at the affected facilities and additional support
services such as personal assistance, job training and retraining and a job hot
line will be available. In the event that a position is not available for an
affected associate, severance pay will be offered in addition to unemployment
benefits.
Springs will record a one-time after-tax charge of approximately $1.8
million, or $0.10 per diluted share, during the fourth quarter of 2000. This
charge includes $1.1 million related to non-cash asset write-offs and $0.7
million for severance costs associated with discontinuing the production. The
company expects that its annual after-tax operating costs will be improved by
$2.2 million compared with continuing to operate this outdated equipment.
Including one-time transition costs and a partial-year benefit, after-tax
operating costs will be improved by $1.1 million in 2001.
Over the past five years, Springs has invested over $54 million at the
Katherine Plant on state-of-the-art air jet spinning and weaving, making it one
of the most modern bedding manufacturing plants in the country. Also, the
Elliott Plant recently completed a $20 million installation of modern air jet
weaving equipment.
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The Katherine Plant will employ 675 associates and the Elliott Plant
will employ 160 after the phase down is completed. These plants are two of
Springs' 10 facilities in the area that manufacture bedding products.
Springs Industries (NYSE: Ticker Symbol SMI) supplies leading retailers
with a complete line of sheets, towels, comforters, window treatments and other
coordinated home fashions designed to simplify home decorating for every
consumer. Our major brands are Wamsutta(R), Springmaid(R), Graber(R), Bali(R),
Nanik(R), and Dundee(R). Springs also markets bed and bath products for
institutional and hospitality customers, home sewing fabrics, and baby bedding
and baby apparel products. The company operates facilities in 13 U.S. states and
owns marketing and distribution subsidiaries in Canada and Mexico.
THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE
MEANING OF APPLICABLE SECURITIES LAWS. THESE STATEMENTS ARE BASED UPON THE
COMPANY'S CURRENT EXPECTATIONS AND ASSUMPTIONS, WHICH ARE SUBJECT TO A NUMBER OF
RISKS AND UNCERTAINTIES INCLUDING THE ABILITY OF THE COMPANY TO MEET ITS
COST-REDUCTION GOALS, ALONG WITH OTHER FACTORS WHICH ARE DISCUSSED IN CERTAIN OF
THE COMPANY'S SEC FILINGS.
WWW.SPRINGS.COM
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