Vidalia Mills has new owners, but the fate of the historic Draper X3 looms that were housed at the Vidalia, La. facility remains shrouded in mystery.
Natchez Democrat reports that the property will be deeded back to Jefferson Financial Federal Credit Union and Greater Nevada Credit Union—the same credit unions that Vidalia Mills owed approximately $32.5 million in principal interest and late charges.
In February, the Concordia Parish Sheriff’s Office announced that the property would be auctioned to recover outstanding debt. In 2018, Vidalia Mills received a $25 million loan from Jefferson Financial Federal Credit Union and a $5 million loan from Greater Nevada Credit Union for equipment and working capital.
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A sheriff’s sale for the 900,000-square-foot former Fruit of the Loom distribution center and the 81.87 acres of land it sits on was held on Aug. 6.
Natchez Democrat reports that the highest bid was $1,005,000, which was under the appraised value of $1,193,185. Bidding started at $795,456.67.
Though there was a lot of discussion among U.S. denim executives to find a solution that would keep the historic selvedge looms working on U.S. soil, the newspaper says the credit unions and Gibbs International, a leader in the pre-owned industrial equipment industry, were the only two participants in the auction.
Additionally, the looms may have never been up for grabs—despite being listed on the auction’s inventory list.
According to multiple sources within the denim industry, the historic White Oak looms were not included in the recent auction of Vidalia Mills’ assets due to an ongoing legal dispute over their ownership. One individual familiar with the matter said the looms may have been leased to Vidalia Mills by a separate entity, and that the dispute could leave them tied up in litigation for some time.
This sentiment was echoed by another source close to the mill, who compared the looms to being boats docked at a marina—present at the facility, but not necessarily owned by it.
Additionally, a third source noted that three separate parties have filed competing claims of ownership over certain contents of the mill. These claims, which involve both fiber and equipment, are expected to be ruled on in September. However, the source said the filings do not specify exactly which pieces of equipment are in dispute.
Vidalia Mills opened in 2018 with hopes to revive “Made in USA” denim production. In September 2019, during a “Farm to Fashion” supply chain tour that Sourcing Journal attended, Vidalia CEO Dan Feibus laid out the game plan for the mill, which included open-end yarn spinning, selvedge denim production and more.
