Amid falling sales and stiffening competition, Dalton, Ga.-based flooring manufacturer Beaulieu Group has sought Chapter 11 bankruptcy protection as the business seeks to restructure.
The carpet colossus, with more than 2,500 workers and a dozen plants and distribution sites, on Monday didn’t announce any layoffs or closings. Operations are ongoing while it reorganizes, but the company is expected to eye efficiencies and cost savings.
“This is a necessary process as we continue to execute our long-term strategic plans for the business,” said Michael Pollard, Beaulieu Group’s president, about the filing. “Our business model has changed with the industry and our client base since our current capital structure was put into place.”
The privately held company that has been trying to shift more into hard flooring sales said existing lenders have agreed to continue to support Beaulieu by providing debtor-in-possession financing. That, combined with cash from operations, would support the 40-year-old venture, the business said. Beaulieu said it owes between $50 million and $100 million.
Kemp Harr, publisher of industry magazine Floor Focus, said he’s not surprised by the filing in U.S. Bankruptcy Court in Rome, Ga.