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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): September 25, 1998
SPRINGS INDUSTRIES, INC.
(Exact name of registrant as specified in charter)
South Carolina 1-5315 57-0252730
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
205 North White Street, Fort Mill, SC 29715
(Address of principal executive offices) (Zip Code)
(803) 547-1500
(Registrant's telephone number, including area code)
Page 1 of 8
The Index to Exhibits is on Page 5
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TABLE OF CONTENTS TO FORM 8-K
ITEM PAGE
5. OTHER EVENTS 3
7. FINANCIAL STATEMENTS AND EXHIBITS 3
SIGNATURES 4
EXHIBIT INDEX 5
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Item 5. Other Events
As disclosed in its Form 10-Q for the first quarter of 1998, Springs
Industries, Inc. ("Springs" or "the Company") adopted a plan to close its Rock
Hill Printing and Finishing Plant. A pretax charge of $23.0 million was recorded
in the first quarter of 1998, which included an $11.3 million write-off of
plant and equipment, a $4.0 million accrual for anticipated severance costs
arising from the elimination of approximately 480 positions, and a $7.7 million
accrual for certain other anticipated expenses associated with the closing of
the facility. Included in the $7.7 million accrual was a provision to demolish
the facility, which was based on management's belief that finding a purchaser
for the facility was unlikely.
Subsequent to the adoption of the plan, a business contacted the
Company and expressed an interest in purchasing the facility. On September 25,
1998, shortly after the buyer was able to secure financing, the Company
consummated the sale of the facility. As a result of the sale, the Company will
reverse the accrual provision relating to idle plant costs and the demolition of
the facility by approximately $5.0 million, and record a gain on the sale of the
facility of approximately $2.8 million.
Separately, the Company has adopted a plan to modernize its Griffin,
Georgia, towel weaving and yarn operations. Springs announced in September 1998
that it will invest over $26 million to modernize and expand its Griffin Plant
No. 5, Production from Griffin Plant No. 1 will be consolidated into Plant No. 5
beginning in January 1999, with an expected completion by mid-1999. On September
30, 1998, the Company communicated to its associates that 300 positions will be
eliminated as a result of consolidating the two Griffin facilities. As a result
of the adoption of this plan, the Company will record a severance accrual of
approximately $1.1 million and an impairment charge of approximately $4.8
million in its third-quarter earnings.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
99 Additional Exhibits
99.1 News release issued by Springs on September 25, 1998.
99.2 News release issued by Springs on September 30, 1998.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
Springs has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SPRINGS INDUSTRIES, INC.
By: /s/James F. Zahrn
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James F. Zahrn
Executive Vice President
and Chief Financial Officer
Dated: October 9, 1998
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EXHIBIT INDEX
Exhibit Page
99 Additional Exhibits
99.1 News Release issued by Springs on September 25, 1998. 6
99.2 News Release issued by Springs on September 30, 1998.
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