Exhibit 99.1

            Quaker Fabric Reports on Business Developments


    FALL RIVER, Mass.--(BUSINESS WIRE)--July 2, 2007--QUAKER FABRIC
CORPORATION (NASDAQ Symbol: QFAB) today announced that the Company has
determined that it has not met the requirements for committed
borrowings under its existing lending facilities and, as a result, any
advances to the Company by its revolving lenders will only occur on a
discretionary basis. The Company further announced that it likely will
commence an orderly liquidation of its business and a sale of its
assets. The Company continues to talk with each of its existing
lenders about the financing needed to conduct such an orderly
liquidation and sale. In addition, the Company is actively
investigating sources of alternative liquidity, including debt, equity
or a combination of debt and equity financing. There is significant
uncertainty as to whether the Company will be able to obtain
sufficient liquidity from alternative sources to continue its
operations after its annual shutdown period, which this year runs from
July 2 through July 15, 2007. The Company expects that any such
winding up and liquidation would not generate sufficient funds to
permit any payment to holders of its common stock.

    Quaker Fabric Corporation is a supplier of upholstery fabrics for
furniture markets in the United States and abroad.

    THIS PRESS RELEASE CONTAINS "FORWARD LOOKING STATEMENTS," AS THAT
TERM IS DEFINED IN THE FEDERAL SECURITIES LAWS. THE READER IS
CAUTIONED THAT SUCH STATEMENTS ARE NOT GUARANTEES OF FUTURE
PERFORMANCE AND THAT, AS A RESULT OF VARIOUS FACTORS, ACTUAL RESULTS
MAY DIFFER MATERIALLY FROM THOSE PROJECTED. FOR A FURTHER DISCUSSION
OF THESE FACTORS, SEE THE COMPANY'S 2006 FORM 10-K.


    CONTACT: QUAKER FABRIC CORPORATION
             LARRY A. LIEBENOW, 508-646-2264
             or
             PAUL J. KELLY, 508-646-2251
             or
             CYNTHIA L. GORDAN, 508-646-2261



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