Business

NC-based Gulistan carpet to close, shed 400 jobs

Posted December 29, 2012
Updated December 31, 2012

— North Carolina-based carpet maker Gulistan announced in a letter to employees Friday that the company is closing and plans to file for bankruptcy, putting nearly 400 employees out of work.

The letter, which was obtained by The Aberdeen Times, states the company will take about four months to wind down operations at its facilities in Aberdeen and Wagram, and employees will be laid off in stages through June 30.

An unidentified worker told the online newspaper that sales staffers nationwide were let go Wednesday.

The carpet maker, which has been in business for 85 years, said in the letter that it has been unable to resolve its debt or find a buyer. A company representative could not be reached Saturday.

“The company has been making substantial efforts over the past years to restructure its debts, or to restructure its business, and continue to operate,” the letter states. “The company engaged in negotiations and discussions with a private equity group and other companies in the industry, in an attempt to sell the company’s assets as a going concern.

"If successful, these efforts would have avoided or postponed the shutdown of the facilities. The company reasonably and in good faith believed that given earlier notice of a potential closing would have precluded it from obtaining the capital and business being pursued.”

The letter said the company would continue to search for a buyer to purchase its assets.

According to its website, Gulistan traces its roots back to an Armenian textile importer who founded his business in Turkey in 1818.
 

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  • Crumps Br0ther Dec 31, 10:38 a.m.

    That still counts as CHANGE!

  • admyank Dec 31, 10:07 a.m.

    It has started - again.