Clothing manufacturer Fruit of the Loom and cotton producer Parkdale America announced a strategic partnership on Wednesday that will bring advanced technology in ring and open-end spinning of cotton and cotton blended yarns to Fruit of the Loom’s underwear and casualwear products. As part of the agreement, Fruit of the Loom 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.
Rick Medlin, Fruit of the Loom president and CEO, said, “We are happy to join Parkdale in this strategic partnership. Parkdale is one of the largest spinners in the world and Fruit of the Loom has been purchasing yarns from them for many years. This new model will position us to provide our customers with even more innovative products with the great quality and value that consumers expect from the Fruit of the Loom brand.”
Parkdale vice-chairman and CEO Anderson D. Warwick said, “We are excited to have this opportunity. By working together with Fruit of the Loom, we can take advantage of our combined demand and invest in technology that will yield the highest quality at the lowest cost.”
The agreement is expected to close in the first quarter of 2015. Current Fruit of the Loom employees have the opportunity to remain at the facilities as Parkdale employees.