EXHIBIT 99.1

FOR IMMEDIATE RELEASE

         EMPIRE OF CAROLINA ANNOUNCES CLOSING OF $16 MILLION INVESTMENT

         Delray Beach, FL, June 19, 1997 -- Empire of Carolina, Inc. (AMEX: EMP)
today announced that investors have purchased a total of $16 million of
securities pursuant to the terms of the Securities Purchase Agreement with HPA
Associates, LLC and EMP Associates LLC. The $16 million includes $5 million from
the conversion of a Bridge Loan.

         As previously reported, an amendment to the Securities Purchase
Agreement provides that the Company may also sell up to another $5 million of
securities, on the same terms and conditions as the $16 million investment,
subject to shareholder approval. If this additional sale is approved, the total
investment may reach up to $21 million. Also in connection with the transaction,
$15 million of outstanding convertible debentures are being exchanged for newly
issued Series C Preferred Stock.

         Steven Geller, Chairman and Chief Executive Officer, commented, "We are
very happy to announce the closing of this transaction. With these funds, we
have satisfied our lenders' requirement to obtain additional financing and are
able to move forward with our operating plan."

         He continued, "We appreciate the patience and support that we have
received from our lenders and customers. With these funds in place, we can focus
our resources on our business plans, which include the continued turnaround of
our Tarboro manufacturing facility, the development of new product lines, and
improved customer service."

         This press release contains various forward-looking statements and
information that are based on management's beliefs as well as assumptions made
by and information currently available to management, including statements
regarding future economic performance and financial condition, liquidity and
capital resources, and management's plans and objectives. Such statements are
subject to various risks and uncertainties which could cause actual results to
vary materially from those stated. Should one or more of these risks or
uncertainties materialize or should underlying assumptions prove incorrect
actual results may vary materially from those anticipated, estimated, expected
or projected. Such risks and uncertainties include the Company's ability to
manage inventory, production and costs, to meet potential increases or decreases
in demand, potential adverse customer impact due to delivery delays including
effects on existing and future orders, competitive practices in the toy and
decorative holiday products industries, changing consumer preferences and risks
associated with consumer acceptance of new product introductions, potential
increases in raw material prices, potential delays or production problems
associated with foreign sourcing of production and the impact of pricing
policies including providing discounts and allowances. Certain of these as well
as other risks and uncertainties are described in more detail in the Company's
Registration Statement on Form S-1

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filed under the Securities Act of 1933, Registration No. 333-4440, and the
Company's Annual Report on Form 10-K for the year ended December 31, 1996. The
Company undertakes no obligation to update any such factors or to publicly
announce the result of any revisions to any of the forward-looking statements
contained herein to reflect future events or developments.

         Empire of Carolina, Inc. designs, develops, manufactures and markets a
broad range of basic plastic children's toys. Its Holiday Products Division
produces and markets decorative seasonal items including Christmas, Halloween
and Easter illuminated products. The Company's full line of basic toys includes
the Big Wheel(R) line of ride-on toys, Grand Champions(R) collectible horses,
Buddy L(R) cars and trucks, and Power Driver(R) ride-ons.


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