Textile Bankruptcy Idles 6,450

Shockwaves from a bankruptcy that has thrown 6,450 people out of work nationwide have prompted the governor of Virginia to call on the federal government to step in with emergency aid for the jobless.

Wednesday's Chapter 11 filing by Pillowtex - formerly known as Fieldcrest Cannon - is the second for the struggling textile company, which was hit hard by factors including weak demand and foreign competition.

Pillowtex, which is the nation's third largest maker of bedding and bath towels, is closing 16 plants in the U.S. as it liquidates its assets.

Pillowtex, based in Kannapolis, N.C., is only the latest casualty in the American textile industry and for some of the workers, this isn't the first or even the second time they've been out of work.

In North Carolina, the Pillowtex blizzard of as many as 5,000 pink slips adds up to the largest mass loss of jobs in the state's history.

In Virginia, the raw numbers are lower, but in the town of Fieldale, the impact couldn't be much greater, with about 1,000 people losing their jobs because of the Pillowtex bankruptcy.

Meeting with workers in Fieldale Thursday, Virginia Gov. Mark Warner said he will ask the federal government for emergency money to help those in his state affected by Pillowtex Corp.'s layoff of 6,450 textile workers nationwide.

"This is a hard time," Warner told a few hundred mill workers crowded in the rain outside the town's union hall. "I prayed that this would never happen again."

In addition to asking for federal assistance, Warner told the workers that Pillowtex officials have agreed to keep their waterline open to about 1,500 residents who are receiving their water from the company system.

In the meantime, Warner signed an emergency declaration authorizing the state to use federal grants to build a pipeline connecting residents with the county's water supply.

Once called the "Sweatshirt Capital of the World," Henry County, Va., and neighboring Martinsville, Va., have lost more than 10,500 jobs since 1993, most of them in the manufacturing industry.

The unemployment rate is 11 percent in the county, and two high schools are closing to save money. When Pillowtex leaves, Henry County spokesman Tim Hall said the county will lose another $800,000 a year in taxes, as well as its biggest sewage customer.

Fieldale, a community of about 700 along the Smith River, lost much more than jobs when Pillowtex shuttered its mill. The company contributed about $50,000 annually to the Fieldale Community Center, a recreation hall with tennis courts and a swimming pool.

Restaurant owner Denton Boardwine said Pillowtex employees regularly ordered meat loaf, fried chicken and other meals from him. Closing the factory will cut 35 percent of his business.

"I'll survive this," Boardwine said. "I'm just going to have to change my life a little."

About 200 factory workers and their families crammed into the union hall to hear the governor speak. Those who couldn't fit huddled outside under umbrellas as Warner ducked in and out of the doorway so everyone could hear him.

He promised workers he'd try to reopen the plant if another company was willing to buy it.

"If there is a buyer there, we'll try to find a way to make a deal," he said.

But some workers like Ramona Haley, 42, said they won't come back even if the mill were to reopen.

"I need to find something new," said Haley, who was laid off from two other textile mills before joining Pillowtex. "I'd like to get into nursing. ... I'll move if I have to."