Textile maker Dan River Inc has announced plans to axe 312 workers as part of its reorganisation of debt and emergence from bankruptcy.

The Virginia-based company, which manufacturers apparel fabrics and packaged bedroom linens, said it would cease third-shift sewing and comforter production at its Danville plants by the end of the week.

As a consequence, the company will eliminate 100 salaried positions and another 212 employees at the two plants.

"Recognising the impact on our associates, the decision to make these reductions was regretfully made only after careful consideration," CEO Joseph Lanier said on Tuesday.

"However, these moves are necessary to bring costs more in line with the current level of sales."

Salaried employees affected by the move will be entitled to severance packages.

Dan River, which filed for Chapter 11 bankruptcy protection in March, announced plans to close plants and cut 440 jobs in Tennessee and Georgia in November last year.