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Gildan To Buy Another Sock Manufacturing Company

Wednesday 19th of September 2007 02:02:38 AM

T-shirt and hosiery manufacturer, Gildan, Inc. has announced it will buy another sock manufacturing company, V.I. Prewett & Son Inc., in order to expand its reach in the hosiery industry and so the company will be able to reduce the price of its T-Shirts in order to compete with other companies such as Hanesbrands. Gildan purchased the Kentucky Derby Hosiery Co. in 2006 and moved its operations from the US overseas in order to reduce labour costs.

The decision to buy another sock manufacturing company will raise the price of the company’s stock by a small margin, but give it more funds to devote to other areas including T-Shirts. There has been no word as to whether V.I. Prewett & Son Inc., which is located in Fort Payne, Alabama, USA, will be relocated overseas as well.

Over the past year, Gildan has moved much of its operations to countries in the Caribbean and South America. While this has cost job loses in the US, Canada, and Mexico, the company has experienced an increase in stock and overall sales.

While Gildan is the largest manufacturer of T-Shirts and other clothing in North America, it has faced much competition from Hanesbrand, American Apparel, and others. Gildan, who used to be a supplier for other t-shirt manufacturers, now produces its own line of T-Shirts for megastores like Wal-mart in the US.

(c)Steve Woods, www.sxc.hu