JERSEY CITY, N.J. — Best Manufacturing, a manufacturer and distributor of table linen and napery, filed for Chapter 11 bankruptcy protection Aug. 9.
It lists liabilities exceeding $100 million and assets exceeding $153 million in the filing, which excludes its Mexico, Canada and Cambodia subsidiaries.
Lender demands "created unnecessary liquidity pressures" that prompted the restructuring, the company says, but it has sufficient liquidity to fund normal, ongoing business operations in serving its hospitality, healthcare and textile rental customers.
"We believe that the decision to file, although difficult, was in the best long-term interest of the company, employees, customers, vendors and other valued business partners," says Scott Korman, Best's chairman.
The company's transformation strategy includes shifting more business to Cambodia, increasing overseas purchases, closing facilities in Pennsylvania and New Jersey, reducing manufacturing at a Georgia operation, launching a new hospitality apparel line, and consolidating healthcare and institutional into one institutional division.
Milliken & Co., at $11.2 million, heads the list of unsecured creditors.