Polartec is the world's best known premium fleece fabrics and is used for cycle base and midlayers from companies such as Cannondale and Pearl Izumi.
The Massachusetts factory where it is made suffered a business halting fire in 1995. Trade customers rallied round and pitched in with cash to help Malden Mills survive. UK manufacturer Sprayway was one of the companies to guarantee orders to the resurrected mill as well as providing cash support.
But, according to a press release from Malden Mills, the company founded in 1906 has been unable to rid itself of the the debt it took on to survive the aftermath of the conflagration.
The company is in the final stages of negotiations with its bank group to reorganize and restructure debt. The bank group may prefer to accomplish this under the protection of Chapter 11. Negotiations continue on this issue.
“We are looking forward to continued success as we emerge from this reorganization process. We are going to win because we have the best brand which is internationally recognized as top quality, backed by the best research and development, and made by the best workers in the industry," said Aaron Feuerstein, president and CEO.
Malden Mills is open, fully operational and conducting business as usual, said a press statement. The restructuring process will be used to secure the business operations and finances.
“Malden Mills and the Polartec brand have incredible momentum and a very positive outlook for future growth. We have made in-roads and have tremendous opportunities in numerous markets including the United States military, as well as in golf, hunting, fishing, workwear, fitness, casual wear and of course, our core outdoor market. The rate of innovation from our mill has only accelerated and we have a steady stream of new products coming to market. We will emerge from this process a healthier company with bright prospects. Our customers, suppliers, employees and the bank group will all benefit,” said Feuerstein.