A North Carolina textile company said it closed two plants and laid off 200 workers this week because it couldn't find the credit to keep going.
Spectrum Yarns Inc. blamed the credit crunch in a letter to state authorities announcing the mass layoffs. Company president C. Douglas Blanchard said managers tried to find financing until Monday, then closed plants in Marion and Kings Mountain on Tuesday.
Hubert Johnson, manager of the Kings Mountain plant, said Thursday that without the money to make payroll or buy dyes and yarns, the company was out of choices. Blanchard's letter also said the South Carolina company that was its primary yarn supplier last week suddenly stopped shipping materials to Spectrum Yarns.