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Industry Responds to Trevira's Bankruptcy

June 9, 2009

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BOBINGEN, Germany - After Trevira®, one of the world's largest suppliers of FR fiber for textiles, filed for bankruptcy last week, fabric suppliers in the industry are wondering how the company will reemerge after the proceedings and how the textile industry as a whole will be affected by the company's restructuring.

''It's tragic to hear about their demise,'' said Dan Dobin, president of Valley Forge Fabrics, the largest supplier of contract fabrics in the world. ''This is sad news about an iconic brand. It's just like hearing about General Motors. Both GM and Trevira would not or could not keep up with its market.''

Over the past few years, Valley Forge had moved away from Trevira and Avora to seek out other solutions so the company is well-positioned to offer its customers other products which pass the flammability tests in the USA.

''The hospitality industry is much larger and more vibrant than any one company or supplier,'' Dobin continued. ''While Trevira set a standard for excellence for many years, there are several fibers and blends throughout the world which can be used to produce hospitality textiles. These are currently being used in large numbers and have gained acceptance by our industry and authorities.''

''The history [with] Avora® and Kanecaron®, Herculon® and now Trevira teaches us that the market will always level out the playing field and bring out the best in us as an industry no matter how venerated a brand name might be,'' he concluded.

Bill Jones, an important agent and supplier to the cruise ship industry in the USA, also had lots of experience dealing with Trevira, a brand he knows well. ''This goes to show what happens when nobody wants to keep inventory - inventory of fabric or yarn,'' Jones said. ''Trevira was suffering from a lack of commitment on the part of its customers who would not place enough orders to make the product worthwhile to produce.''

Jones feels there will be shortages of Trevira in light of the bankruptcy restructuring and only the most loyal spinners will get product from Trevira for their mill customers.

He said that the cruise ship industry has come to rely on Trevira CS® as a trusted source and other products will have to now be tested all over again to be sure they meet IMO standards. ''Of course, we always have topical treatments as a way to pass the tests,'' he said. ''Trevira will not disappear but they will become a more lean and mean company as a result of the bankruptcy restructuring.''



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