Pushed into Bankruptcy ProtectionIn the years after rebuilding the factory, Malden Mills fell upon some difficult times. For the fiscal year ending October 31, 2001, operating income, projected at the beginning of the year to be $45 million, actually came in at $1.5 million. This resulted from warm weather that produced a drastic drop in sales of Polartec and “a tide of fleece knockoffs that flooded the market.”Malden Mills became so mired in debt that it filed for Chapter 11 bankruptcy protection on November 29, 2001. At the time of the bankruptcy filing, the company’s annual interest on its debt was $19 million, its liabilities totaled $180 million, and its depreciated assets were valued at $190 million.
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