Fruit of the Loom to sell US spinning to Parkdale

“Fruit of the Loom (FOTL) will sell its U.S. yarn spinning operations to Parkdale, which will then convert those plants to the very latest technology in ring and open-end spinning capabilities…” The strategic partnership agreement is expected to close in the first quarter of 2015.

The announcement follows an April announcement that FOTL is moving its knitting from Kentucky to Honduras, leaving FOTL’s US-based operations essentially limited to design, distribution and direction. Although Parkdale appear committed to upgrading the mills currently operated by FOTL, no mention was made of any guarantee FOTL orders would be manufactured only there. With Parkdale’s multinational production bases, the decision clearly increases FOTL’s flexibility in sourcing yarn – but, like its earlier decision, does little to support the belief that the much-touted (but yet to materialise) spinning boom will create greater job opportunities. It seems unlikely, for example, that Parkdale’s upgrading will mean more jobs.

The decision follows a September 26 announcement from Parkdale it had acquired from International Textile Group (ITG)  its 50% of the Summit Yarns mill, in Mexico’s Morales state, and would begin an expansion programme there.