Gulistan Carpets to Close, Costing 395 Jobs
Gulistan Carpet is closing its operations in Aberdeen and Wagram, eliminating nearly 400 jobs, according to a letter the company has sent to employees.
The letter, which has been confirmed for The Pilot by an anonymous company employee, was sent out Friday to employees. The letter states that the company is "in the process of permanently winding down all operations" at its facilities on N.C. 5 in Aberdeen and on Airbase Road in Wagram "beginning immediately and continuing over the course of approximately the next four months."
The letter indicates that employees will be terminated "incrementally in conjunction with the winding down of operations, which will result in the layoff of the company's approximately 395 full-time and part-time employees."
The letter also provided each employee with a itemized list estimating termination dates.
Aberdeen Mayor Betsy Mofield called the news of the closing "awful" and "a terrible blow to the economy of Moore County."
"That business was a main staple of industry in Aberdeen for a very long time," the mayor said.
The letter indicated that the company has made "substantial efforts" over the past few years to restructure its debts and its business and continue to operate or postpone the shutdown. Those efforts, the letter states, "have been unsuccessful to date."
Mofield said had she had known about the company's troubles earlier, the town board would have tried to work with company officials to prevent the closing.
The letter indicates that some company assets were sold through a private sale conducted by Bank of America, and that Gulistan intends to file for Chapter 11 bankruptcy for the orderly sale of the remaining assets.
More like this story