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Delta Apparel Closes Alabama Plant

Plant closing will result in loss of 110 jobs; company moves some manufacturing to Honduras.

DULUTH, Ga. (AP) - Delta Apparel Inc., which makes T-shirts, tank tops, and sweatshirts, said Wednesday it will close a plant in Fayette, Alabama, cut 110 jobs and take restructuring charges as it moves some manufacturing to Honduras.
 
The reorganization is expected to take place in the fiscal first quarter of 2008.
 
The company will take a charge of $10 million, or 75 cents per share, for the restructuring. Delta is also expensing its start-up and excess manufacturing costs associated with the integration of recently acquired FunTees, a manufacturer of privately labeled knitted goods, and the opening of its Honduran textile plant, expected to open in the fiscal second quarter of 2008.
 
The company has two U.S. textile operations left, one in Maiden, N.C., and the other in Fayetteville, N.C.
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