Exhibit 99.1

[PILLOWTEX CORPORATION LOGO]

FOR IMMEDIATE RELEASE
May 28, 2002

      Contact: Karen Cobb, Communications Manager
               (704) 939 - 2775

            Pillowtex Corporation Emerges From Chapter 11 Bankruptcy

KANNAPOLIS, N.C. - May 28, 2002 - Pillowtex Corporation, a leader in the home
fashions industry, announced today that it emerged successfully from Chapter 11
bankruptcy reorganization on May 24, 2002 after satisfying all conditions of the
Company's Plan of Reorganization. The Plan of Reorganization was confirmed by
the U.S. Bankruptcy Court on May 1, 2002.

     The Company emerges from its 18-month reorganization process in a much more
solid financial position and with a clear strategy for the future.

     "The reorganization process provided an opportunity for our Company to
restructure to meet the current needs of the home fashions market more
effectively," said Tony Williams, President and Chief Operating Officer. "The
benchmarks we have set for success are clear - strong brand marketing, more
effective employment of our manufacturing capacity, the development of strategic
sourcing partnerships and a fanatical focus on quality. Taken together our goal
is to be the industry leader in customer service. With the reorganization behind
us, we are now in a position to focus our full attention to meet that goal and
do so with a much improved balance sheet."

     The Company has reduced its debt from $1.1 billion prior to filing the
bankruptcy petition to approximately $205 million.

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     Mike Harmon, Chief Financial Officer, said, "The Company's emergence is
financed by a $112 million term loan, and a $200 million syndicated revolving
credit facility provided by Congress Financial Corporation, as Agent. At
emergence, the Company has approximately $100 million of availability under the
revolving credit facility."

     The Company anticipates changing its name in the near future.

About Pillowtex

     Pillowtex Corporation, with corporate offices in Kannapolis, N.C., is one
of America's leading producers and marketers of household textiles including
towels, sheets, rugs, blankets, pillows, mattress pads, feather beds, comforters
and decorative bedroom and bath accessories. The Company's brands include
Cannon, Fieldcrest, Royal Velvet, Charisma and private labels. Pillowtex
currently employs approximately 8,300 people in its network of manufacturing and
distribution facilities in the United States and Canada.

Forward-Looking Statements

     Certain statements contained in this press release, including, but not
limited to, information regarding the future economic performance and financial
condition of the Company, the plans and objectives of the Company's management
and the Company's assumptions regarding such performance and plans, are forward
looking in nature. Factors that could cause actual results to differ from the
forward-looking information contained in this press release include, but are not
limited to, the Company's ability to implement its business plan; the Company's
leverage; the price and availability of raw materials; reliance on key suppliers
and vendors; the competition; general retail industry conditions; dependence on
specific brand names; risk of loss of material customers, labor relations and
seasonality of the business. These and other such factors are discussed in
greater detail under the caption "Risk Factors" in the Company's Annual Report
on Form10-K filed with the Securities and Exchange Commission on March 28, 2002.

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