Burlington to Shut 7 Plants, Cut 2,900 Jobs

Fabric maker Burlington Industries Inc. said it will shut seven plants and cut 2,900 jobs, or 15% of its work force, as it reported a 40% drop in quarterly earnings. The company cited a surge in imports of low-priced garments, primarily from Asia, for the cuts and profit drop. Burlington said its earnings fell to $7.97 million, or 14 cents a share, on a 15% plunge in revenue to $407.2 million. The company will close its knitted fabrics and shirts business, combine its Burlington Klopman Fabrics and Burlington Tailored Fashions divisions and wrap its sportswear business into its denim fabrics unit. In addition, capacity at U.S. apparel fabrics operations will be reduced by 25%. In July, Burlington said it would build four apparel plants in Mexico. Burlington shares fell $1.44 to close at $8.25 on the NYSE.