Dyersburg Corporation today announced that it will consolidate and downsize its operations. The company cited general economic trends and increased competition from abroad as the reasons for its operational changes. The changes will take effect immediately.

As part of its strategy to return to profitability, Dyersburg intends to consolidate its textile manufacturing operations to two facilities. The company also said that it intends to sell its stretch division, United Knitting. The consolidation will not affect its ability to deliver product to customers.

As a result of the consolidations, Dyersburg's company-wide workforce will be reduced by approximately 900 employees. The reductions will be from manufacturing, sales and corporate positions. The company currently employs about 2,100 people.

T. Eugene McBride, chairman of the board and chief executive officer of Dyersburg Corporation, said: "For some time now, we have been examining our operations in order to improve our efficiency and remain viable in the current economic conditions. We had hoped to avoid personnel reductions. However, with the downturn in the general economy and increased competition from low-cost producers abroad, we had little choice but to make the difficult decision to downsize our operations."

Dyersburg continues to implement its previously announced restructuring plan and work towards an orderly exit from Chapter 11 protection. The company said that its restructuring plan was not a factor in the decision to downsize its operations. Trade creditors will continue to be paid and will be unaffected by the operational changes.