Forstmann downsizes to meet debt payment. (textile maker)

Daily News Record, July, 1990 by Farnsworth, Steve

FORSTMANN DOWNSIZES TO MEET DEBT PAYMENT

WASHINGTON (FNS) -- Forstmann & Co., facing an Oct. 1 deadline for the repayment of a $64.7-million bank loan, has been downsizing its operation to try to regain its financial footing.

The fabric company reduced the size of its work force by just more than 10 percent between July 1, 1989, and April 1, 1990, down to 2,651 employees, according to company reports filed with the Securities and Exchange Commission. In mid-March, Forstmann started closing its manufacturing plant at Tifton, Ga., one of six company plants.

Inventories fell by almost 11 percent between Oct. 28, 1989, and April 29, 1990, down to $61.8 million. Much of the decline is in the areas of raw wool and finished inventories, according to...

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