Benzinga takes a look back at a notable market-related moment that occurred on this date.
What Happened? On Nov. 16, 2001, Burlington Industries filed for Chapter 11 bankruptcy protection.
Where The Market Was: The Dow finished the day at 9,866.99. The S&P 500 traded at 1,138.65.
What Else Was Going On In The World? In 2001, al-Qaeda terrorists attacked the United States using hijacked passenger aircraft to bring down the World Trade Center towers in New York City. Italy’s Leaning Tower of Pisa reopened to the public following 11 years of repairs that stabilized the structure. Average U.S. monthly rent was $715.
Burlington Bankruptcy: Burlington Industries was founded in Burlington, North Carolina in 1923. The company was once the largest U.S. textile maker. At its peak, Burlington was the 44th largest U.S. industrial company, generating $1.2 billion in annual sales.
Burlington failed to adapt to the changing times, and the company fell into financial hardship. After declaring bankruptcy in 2001, Burlington’s remaining assets were acquired by International Textile Group in 2003. At the time of the bankruptcy, Burlington reportedly had just 500 remaining employees.
The company moved out of its headquarters in 2004, but ITG continues to operate subsidiaries Burlington WorldWide Apparel and Burlington House Interior Fabrics. The company also owns the brand name Burlington, which has led to conflicts with unaffiliated Burlington Stores Inc (NYSE:BURL), owner of Burlington Coat Factory.
ITG was subsequently acquired by private equity firm Platinum Equity in 2016.
