Business as usual for Burlington Rug

MONTICELLO, AR — Due to confusion in the marketplace, Burlington Rug Corp., based here, last week issued a release to the trade announcing it is "not in financial trouble," said ceo Saeid Korhani, unlike its larger namesake, Burlington Industries.

Burlington Industries earlier this month filed for Chapter 11, saying it will focus on developing its Lees Carpets business and expanding global sourcing partners through its new Hong Kong subsidiary, Burlington WorldWide Limited.

"We've been receiving calls from people asking if we were the same company or affiliated with them," Korhani told HTT. "We just wanted to make sure people realized we're not related. We are two separate companies."

Burlington Rug Corp., a manufacturer of tufted and printed room-size bath and scatter rugs and mats and carpets, late last year bought from Burlington Industries its facility here as well as the right to use the name Burlington, Korhani said.

"There are other companies like us with Burlington in their name — Burlington Coat Factory, for example. But none of us are affiliated with Burlington Industries," Korhani said.

In other Burlington Rug news, former consultant Brian Ballingall has left the company.

During his time with Burlington Rug, he also served as executive vp and vp of the company's Canadian division.

"It was just getting too difficult to work from Canada, and for the company it's easier to have someone on site," Ballingall said. "I'm a personal friend to Saeid, and I wanted to help him get his business going at the onset. But now he's doing well. I did my part to help him get up and started."

Ballingall said he is now working as a freelance training and business development consultant to Canadian-based textile companies and other foreign textile companies, helping them establish their businesses in North America.

In anticipation of this exit, Korhani late this summer hired Jan Pourquoi as executive vp.