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news for Rappahannock, according to the local manager. The company recently closed its Brookneal plant in Southwest Virginia, selling out to Bassett-Walker, a firm which deals primarily in furniture but does handle "some sewing." Both the Brookneal and Rappahannock plants made "bottoms," Walker noted. “The majority of Brookneal’s work will be transferred here...That puts us in a better position. We'll be increasing our business, not cutting back," said Walker, predicting that more cutting room workers will be added to the plant's force, currently at 310 in December. "I'm confident we will be hiring in the sewing room, too."
By closing its Brookneal operation. Walker said, the company hopes to have all its plants running at full capacity. In addition to the plant at Flint Hill, Aileen Incorporated has branches in Culpeper. New Market, Monterray, South Hill and Victoria.
The current cash flow problem that led to the reduction in benefits arises from a time lag between expenditures and reimbursement, according to Walker. "We’re not what you would call ‘in debt’,” he maintained.
Walker explained that the company invests capital in yarn that must be sevyn into garments and shipped to retailers who then have 30 to 60 days to pay for the finished product. The interval between Aileen Incorporated’s expenditure for yarn and the flow of cash back from retailers is between two and three months, he noted. "Because of that, we need an awful lot of operating capital," Walker said, adding that the drop in sales over the past several quarters has reduced the amount of operating capital that is available. “Goods have not been moving at the retail end. That’s the whole problem,” he said.
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