S&P: Unifi ratings unaffected

Standard & Poor's said Wednesday that the ratings and outlook on Unifi Inc. would not be affected by the company's disclosure in its 10-Q filing that an unconsolidated affiliate, Parkdale America LLC, may have violated U.S. antitrust laws.

According to the filing, Parkdale informed Unifi that it participated in activities with competitors in the markets for its cotton yarns (used in hosiery and other garments) and in doing so might have violated U.S. antitrust laws. The filing also stated that Parkdale had voluntarily disclosed its activities to the U.S. Department of Justice Antitrust Division, which is now investigating the matter.

Although this disclosure is a concern, S&P said it believes it would be premature to take any action given the lack of current information and the early stage of the investigation. Unifi stated that it had no involvement in the activities at issue and it believes it has no liabilities related to them.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.