Willcox & Gibbs Restructures Macpherson Subsidiaries

Bobbin, Dec, 1999

Willcox & Gibbs Inc. has announced that it plans to restructure its Macpherson subsidiaries, which distribute embroidery equipment and supplies, including embroidery machines manufactured by Barudan Company Ltd.

Under the plan, Willcox & Gibbs -- one of the largest North American distributors of replacement parts, supplies and ancillary equipment to the sewn products industry -- said that it has agreed to sell its Macpherson Canada operations to Barudan. In addition, the company is in negotiations with Barudan to restructure Willcox & Gibbs' U.S. Macpherson subsidiary. As a part of this agreement, which is designed so that Barudan and Macpherson will work closely together, Barudan embroidery machines formerly distributed by Macpherson in the United States will be distributed by Barudan.

Macpherson will continue to be the exclusive distributor of Barudan genuine parts for such machines, as well as continue to be the exclusive distributor of Barudan towel hemming machines and used machines. Additionally, Emtex Leasing Corp. will continue as the exclusive leasing company for all Barudan machines.

The restructuring is subject to reaching a final agreement with Barudan and approval of Willcox & Gibbs' bankruptcy court. Willcox & Gibbs currently is operating as a debtor and debtor in possession under Chapter 11 of the bankruptcy code.