Textile Mill Files for Bankruptcy Protection
Kronfli Spundale Mills Inc., a 27-year-old knitting mill, announced it has filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Los Angeles.
The Vernon, Calif.–based company is one of only a handful of vertical mills left in the Southern California market that does its own dyeing, finishing and manufacturing. The company, which employs 125 people, was once a large supplier to the fashion industry. It now focuses on specialty fabrics, including Nomex, Kevlar and other synthetics geared toward the sportswear, industrial and medical industries.
The mill filed a Chapter 11 petition on May 11 to give itself time to refinance its debt, said principal Edward J. “Ted” Kronfli.
Kronfli said competition from offshore producers and local factors such as energy costs have affected the Southern California industry’s business during the past couple of years.
Nevertheless, Kronfli said the company plans to emerge from Chapter 11 within a year. It is finalizing a factoring and financing package.
“We believe in what we do,” Kronfli said. “You have to do a lot of pioneering to survive, and we plan to continue in this business.”
Company executives said there will be no interruptions in service or product deliveries. The mill is shipping textiles daily.
The news was not startling to the local textile industry, which has seen its share of setbacks over the years.
“This creates a ripple effect that affects every individual in the industry,” said Hal Kaltman, president of the Textile Association of Los Angeles. “It’s a sign of the times.” —Robert McAllister
