Carl Marks advises Joan Fabrics in sale of assets

27 Jul '07

2 min read

Joan Fabrics Corporation, a Tyngsboro, Mass.-based producer of high quality specialty textiles, has announced the sale of its assets, including product lines Circa 1801, Guild 360 and Texel. Carl Marks Advisory Group LLC (CMAG) advised Joan Fabrics in connection with the transactions and provided interim management services to the company.

CMAG assumed responsibility for management of the company on March 19, 2007, providing interim management for the positions of chief restructuring officer, chief operating officer and chief financial officer.

The Carl Marks management team worked to reinvigorate the business following an extended period of minimal activity as a result of financial constraints, enabling the company to be sold as a going concern.

At the time of the sale, Joan Fabrics produced top-quality textiles for the residential and hospitality sectors as well as for office furniture and wall coverings used in commercial facilities in the United States, Canada and Mexico.

Valdese Weavers LLC of North Carolina, one of the largest producers of jacquard upholstery fabrics in the United States, purchased the company's Circa 1801 and Guild 360 product lines.

Texel, based in Mexico, was acquired by Elkin McCallum, chairman of Joan Fabrics. Non operating machinery and equipment were sold to Gordon Brothers Group LLC of Boston. Fred Godley of North Carolina acquired Joan Fabrics' non operating plants and warehouses in North Carolina.

"The swift reinvigoration and sale of Joan Fabrics' assets was an immense accomplishment. We are confident the transactions were well targeted and executed with the right buyers," said Rick Heller, CMAG partner.

"The U.S. textile industry is experiencing exceptionally difficult times as a result of much manufacturing moving offshore. To be able to sell Joan Fabrics' assets in such a short period of time is a real victory and very good for the company and its stakeholders."

Carl Marks Advisory Group LLC

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