In a letter to its employees, Gulistan® Carpets announced it was filing bankruptcy and closing its Aberdeen and Wagram, North Carolina plants. According to the letter, the company made "substantial efforts" over the past few years to restructure its debts and to continue to operate and postpone the shutdown. Those efforts, the letter states, "have been unsuccessful to date." The plant closings will result in the layoff of 395 employees.
Meanwhile, the Dixie Group announced it is taking over some of the Stainmaster® products produced by Gulistan and will market them through its Dixie Home division. According to Floor Focus, Dixie is not purchasing any Gulistan assets, only the rights to the Stainmaster products, which will be produced by Dixie after a transition period. Dixie Group's CEO, Dan Frierson, said the products will give them a more complete Stainmaster product line.
Hooray for Dixie! Stainmaster is about the greatest thing that happened to the carpet industry since tufting in the view of this old carpet cleaner. But now there are rumors that some mills are going to market polyester products under the Stainmaster brand instead of the traditional 6,6 nylon. If this is true, my opinion may change.
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