Troubled textile giant Guilford Mills spent nearly $5 million on debt counsellors and various other bankruptcy-related consultants in the months leading up to its filing for bankruptcy protection, it was reported on Thursday.

According to the Greensboro News & Record, the company paid Nightingale & Associates $1.9m for consulting on financial restructuring matters from September to when it filed for Chapter 11 this March.

The paper said that according to recently filed court documents, Guilford also paid investment banking firm Rothschild Inc $800,000 and spent $2.2m on two law firms.

The North Carolina-based company, which in April announced plans to axe two plants and 280 jobs, filed for Chapter 11 with debts of more than $409m.