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Posted Date: 4/1/2009

Wellstone Mills Partners with American Apparel

Greenville, SC-based Wellstone Mills LLC, a manufacturer of yarn and apparel, and Selma, AL-based American Apparel Inc., a manufacturer of military apparel, have entered into an agreement whereby the companies will team together to research and develop new yarns, fabrics and apparel for use by the U.S. Military.

In order to achieve maximum efficiency in the R&D efforts, Wellstone has agreed to sell to American Apparel certain apparel manufacturing assets which are associated with its U.S. Military contracts.

The arrangement with American Apparel will allow Wellstone to focus on and grow its core yarn business while maintaining a leading presence in the U.S. Military apparel supply chain.

The companies report that, regrettably, the sale of these assets to American Apparel will result in a permanent reduction of the workforce in Wellstone's Mississippi-based apparel manufacturing plants. The company will provide laid-off employees with assistance finding new jobs.

for more information: www.wellstonemills.com

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