Fruit of the Loom in Bankruptcy; Tultex to Liquidate To subscribe to Bobbin, please visit Pressures in the basic apparel market have taken a toll on some of the US apparel industry's largest players in recent years, and the shakeout is far from over. Fruit of the Loom's bankruptcy filing and the recent announcement by Tultex Corp that it will liquidate are the latest entries in a long list of hardships for firms that produce basics such as T-shirts and fleece athletic apparel.