Beaulieu Files Chapter 11 Bankruptcy Protection
Beaulieu Group, a Dalton-based flooring company, filed for chapter 11 bankruptcy protection according to Chattanooga CBS affiliate WDEF.
The flooring industry has been making its way back since the hard blow it took during the 2008 housing market collapse and ensuing double-dip recession. Beaulieu was considered one of the “big three” of flooring manufacturers in northwest Georgia competing with Shaw and Mohawk. It has since ceded its number 3 position due to a shift away from carpet to more hard surfaces according to the Chattanooga Times-Free Press.
From the Times-Free Press:
“Beaulieu family members and our board of managers believe pursuing a restructuring through chapter 11 is the best path forward at this time,” Michael Pollard, president of Beaulieu Group LLC, said in a statement today. “We have evaluated alternatives to address Beaulieu’s capital structure, and believe that restructuring through the chapter 11 process will best position all of Beaulieu Group LLC’s businesses for future success.”
The 40-year-old company was once the third biggest carpet maker in America, but its industry’s position has slipped as Mohawk, Shaw, Engineered Floors and Interface have grown and consumers have shifted more floor covering to hard surfaces rather than carpet.
Beaulieu’s management is hopeful that reorganization will make for a leaner company and invest for the future.
About Author
nsmith
Father. IT Geek. Former 14th District GOP Chairman (2015-2017). Former Walker GOP Chairman (2009-2013). Resident of Chamblee. American. Georgian. Conservative.
Add a Comment
You must be logged in to post a comment.
What is doing them in is the lack of competitive bid prices on government work, the switch roll to tile in the caret industry and the lack of green/ recycle content. Interface is the leader of recycled content. Their bids are written so that they receive viable removed carpet from a project, and produce it into backing and underlayment content which reduces the cost of using newer petroleum based products. Shaw has some cutting edge macrobiotic glues and coatings witch fight mold and fungus. Shaw also has the synergy power of it’s sister trades that all fall under Berkshire Hathaway.