Dan River, a home textile manufacture of the U.S. is in the process of winding down its operation including factory closure and will liquidate after 126 years in business. The company has already dismissed the majority of staff and is operating with a minimum crew at the moment, leading employees still on the job to transfer to its retail products division to engage in merchandising.

The company is under Indian chemical manufacturer GHCL which announced it would spin off the home textiles manufacturing division as part of it restructuring plan. This division was to include three U.S.-based businesses: Dan River, HW Baker and Best Textiles, and the retail business division includes the 300-store Rosebys, a specialty chain in the U.K.

Dan River had filed for bankruptcy in 2005, worn down by competition from lower-cost imports as well as the impact of major customer Kmart Corp.'s 2002 bankruptcy, and after filing for Chapter 11, it has whittled down its debt to approximately $90 million from $270 million. The company was bought by GHCL in January 2006 in a deal worth $93 million and became a subsidiary.