Former CEO of yarn manufacturer Unifi, Brian R Parke, will be paid $2.3m following his exit from the company at the start of this month.

The company said in a filing to the US Securities and Exchange Commission (SEC) that the aggregate amount represented three years of his then-current base salary.

It added that the board had terminated Parke's position and employment agreement as of 1 August.

The filing continued that pursuant to the terms of the employment agreement, and as a result of the Termination, Parke was entitled to receive an aggregate of $2,312,500, representing three years of his then-current base salary, together with additional compensation equal to thirty days of his then-current base salary in lieu of the thirty days' prior written notice of termination provided in the employment agreement.

just-style reported earlier in the month that Unifi had terminated Parke as its chairman, president and CEO effective immediately. Parke had been president of the company since 1999, CEO since 2000 and chairman since 2004.

The company has been experiencing financial difficulties. In April, two announcements pointed to the troubles the yarn maker has been experiencing in trying to lower manufacturing costs to compete in the marketplace.

A few days later it announced that it will close its Kinston, North Carolina facility, with 260 employees affected, and also released operating results for its fourth quarter and fiscal year today (3 August).

Net loss for the quarter was $72.3m compared a net loss of $5.4m for the prior year June quarter, while net loss for the 2007 fiscal year was $113.1m compared to a net loss of $14.4m for the previous fiscal year.