Debt-strapped Martin Color-Fi plans to sell its carpet and yarn operations, suspend its fine-denier polyester productions and shut down its nylon pellet and staple operations.
This will allow the Edgefield, S.C., company to focus on its recycled polyester fibers business.
``These decisions to operationally restructure have been difficult for us to make, but we are confident that they are the right ones for our company,'' Chief Executive Officer James Martin said in a news release. ``The divestiture of the carpet and yarn divisions, together with the liquidation of excess inventories ... will enable us to substantially reduce our debt. We are refocusing all of our energies on the business we know best, and we expect that these moves ... will return the company to operating profitability, before interest charges on the company's debt.''
Martin Color-Fi has a carpet facility in Dalton, Ga., and a yarn plant in Laurens, S.C. It is talking with several potential buyers and would like to sell the units as soon as possible, Executive Vice President and Operational Officer Stephen Zagorski said by phone.
RBI International, a Dalton consulting firm, is representing Martin Color-Fi in the effort to sell the carpet and yarn properties.
About 40 employees will be laid off and others transferred when nylon pellet and staple operations cease at the firm's Star plant in Edgefield. Staple, Zagorski explained, is a bale of synthetic fibers cut into a finite length.
Martin Color-Fi makes polyester fiber from bottles, off-specification packaging resins, fiber waste and film waste. Martin Color-Fi reported its Sumter, S.C., plant, which had been operating at 60 percent, is back to full production.
Martin Color-Fi is still in default of its loan but is working on a plan acceptable to NationsBank, its lender, for restructuring and repayment of its $60 million debt.