Five executives from textile maker Malden Mills have voluntarily withdrawn a plan that would have given bonuses of at least US$1m when the bankrupt firm goes up for sale later this month, according to local press.

The Eagle Tribune reported that the company's CEO Michael Spillane said court arguments about the bonuses could potentially slow the sale process. Malden Mills will be auctioned 20 February, starting at $44m.

"It wasn't something that anyone wanted to spend time defending," Spillane purportedly said.

"I just think we're trying to focus on what's in the best interest of everybody involved here in terms of a speedy and fair transaction." He also said he has no plans to leave Malden Mills, the newspaper reported.