DELTA WOODSIDE INDUSTRIES INC

DELTA WOODSIDE INDUSTRIES INC

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Company Overview
Delta Woodside Industries, Inc, a privately held company, is a premier global supplier of fine quality woven apparel fabrics. The company was incorporated in the year 1972 and is headquartered in Fountain Inn, South Carolina.
Delta Woodside’s business is conducted through Delta Mills, Inc., a wholly owned subsidiary which produces a broad range of finished apparel fabrics in its manufacturing plants in South Carolina. Delta Mills sells and distributes its fabrics through a marketing office in New York City (which serves the United States, Canadian and Mexican markets), with sales agents also operating from Atlanta, Dallas, Angeles, and San Francisco.
Delta Woodside employs approximately 600 associates. The company’s customers include Liz Claiborne and manufacturers of private-label merchandise for J. C. Penney, Sears, and Wal-Mart. Goods made from its fabrics include Levi’s Dockers pants, Haggar’s Wrinkle-Free pants, women’s apparel, and work uniforms and camouflage fabric for the US military.
Delta Woodside is focused in knowing its customers and exceed their expectations by providing bottom-weight fabrics to the branded, private label, catalogue and specialty retailer with a sharp focus on: high quality, fashion, competitive pricing, rapid replenishment, dependability, and prompt and flexible service.
Business Summary
Delta Woodside Industries, Inc. is the parent of subsidiaries that are engaged in the manufacture, sale and distribution of textile products. The Company produces woven textile fabrics through its Delta Mills operating subsidiary, which is the only business segment of the Company. Delta Woodside produces cotton pants-weight woven fabric used in the manufacture of casual slacks, such as Levi-Strauss’ Dockers and Haggar Corp.’s Wrinkle-free. Other apparel items manufactured with the Company’s fabrics include women’s chino pants, women’s blazers and career apparel (uniforms). The Company also sells camouflage fabric and other fabrics used in apparel for the United States Department of Defense. In October 2006, the Company and Delta Mills, Inc. filed voluntary petitions for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court.
Description and history
Delta Woodside Industries, Inc., incorporated in 1972, is the parent of subsidiaries that are engaged in the manufacture, sale and distribution of textile products. The Company produces woven textile fabrics through its Delta Mills operating subsidiary, which is the only business segment of the Company. Delta Woodside produces cotton pants-weight woven fabric used in the manufacture of casual slacks, such as Levi-Strauss’ Dockers and Haggar Corp.’s Wrinkle-free. Other apparel items manufactured with the Company’s fabrics include women’s chino pants, women’s blazers and career apparel (uniforms). The Company sells its fabrics primarily to numerous apparel manufacturers, and apparel resellers and their subcontractors. The Company also sells camouflage fabric and other fabrics used in apparel for the United States Department of Defense. In October 2006, the Company and Delta Mills, Inc. filed voluntary petitions for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court.

Delta Woodside manufactures woven textile fabrics from cotton, wool, flax or synthetic fibers from cotton yarn or from synthetic filament yarn. Cotton is purchased from numerous suppliers. Wool, flax, synthetic fibers and synthetic filament yarns are purchased from a smaller number of competitive suppliers. The Company spins the major portion of the spun yarns used in its weaving operations and the balance is purchased from a small number of domestic spinners. In manufacturing these yarns, the cotton and synthetic fibers, both separately or in blends, are carded (fibers straightened and oriented) and then spun into yarn. In other fabrics, filament yarns are used. The spun or filament yarn is then woven into fabric on looms. The unfinished fabric at this stage is referred to as greige goods. Finished fabric refers to fabric that has been treated by washing, bleaching, dyeing and applying certain chemical finishes.

The Company’s principal raw material is cotton, although it also spins polyester, wool, linen fiber, acrylic, lyocell, nylon and rayon fibers and weaves textured polyester filament. Polyester is obtained primarily from two major suppliers, both of whom provide competitive prices. During fiscal year ended July 2, 2005 (fiscal 2005) approximately 84% of the Company’s finished fabric sales were of fabrics made from cotton or cotton/synthetic blends, while approximately 16% of such sales were of fabrics made from spun synthetics and other natural fibers, including various blends of rayon, polyester, and wool.

Delta Woodside sells its fabrics primarily to numerous apparel manufacturers, and apparel resellers and their subcontractors. These manufacturers and resellers include Levi-Strauss or its subcontractors, Haggar Corp., the Wrangler and Lee divisions of V.F. Corporation, and Liz Claiborne, Inc. and private-label apparel manufacturers for J.C. Penney Company, Inc., Sears, Roebuck & Co., Wal Mart Stores, Inc. and other retailers. The Company also sells camouflage fabric and other fabrics used in apparel for the United States Department of Defense. It sells its fabrics through Delta Mills Marketing Inc., a wholly owned subsidiary with a marketing office based in New York City. For fiscal 2005, the Company had one customer, Levi-Strauss and its subcontractors, which exceeded 10% of consolidated net sales.

Business Line
Global supplier of fine quality woven apparel fabrics
Subsidiary
DELTA MILLS, INC
Advisor
KPMG LLP
IPO date
2/1987
US SIC Code
2211
Company Address
700, North Woods Drive

City province or state postal code
29644, FOUNTAIN INN, SC
Phone: +1 864 255 4100
Fax: +1 864 255 4165
Country address: UNITED STATES OF AMERICA
Website url: www.deltawoodside.com