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{{Short description|Manufacturer of decorative fabrics and automotive supplies}}
{{Infobox
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| foundation = 1891
| defunct = 2007
| location = [[Southfield, Michigan]],
| num_employees = 14,000 (2006)
| industry = [[Auto part|Auto Parts]]
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'''Collins & Aikman''' Corporation was an [[Automotive Industry|automotive]] manufacturer of cockpit modules and automotive floor and acoustic systems and a supplier of instrument panels, automotive fabric, plastic based trim and [[convertible]] top systems. The Company's operations spanned 15 countries, incorporating about 120 facilities and approximately 25,000 employees. It entered [[
==Business summary==
Collins & Aikman Corporation (C&A) was engaged primarily in the design, engineering and manufacture of automotive interior components, systems and modules. The company supplied products from three main categories: plastic components and cockpits, soft trim and convertible roof systems. Its products included instrument panels, fully assembled cockpit modules, floor and acoustic systems, automotive fabric and interior trim, as well as exterior trim and trim set, backlights, well slings, [[tonneau]] covers and power actuating systems.
In North America, Collins & Aikman manufactured components for approximately 90% of all light vehicle production platforms. Sales were primarily made to North American-based [[original equipment manufacturers]] (OEMs), as well as Asian- and European-based OEMs. It conducted all of its operating activities through its wholly owned subsidiary Collins & Aikman Products Co.
===Decorative Fabric group===
==Entering into Bankruptcy==▼
Collins & Aikman was also involved in the manufacturing of decorative fabrics and in 1976 acquired [[Mastercraft Corporation]] of [[Spindale, North Carolina]], the world's largest maker of woven [[Jacquard weaving|Jacquard fabrics]]. [[Andrew Major]], Mastercraft's owner, became president of the Collins & Aikman Decorative
In early 2005 the firm had to review it's 2004 results due to accounting problems. It then suffered a liquidity crisis which resulted in the ousting of the chairman and CEO, [[David Stockman]], in early May, followed by the Chapter 11 filing. ▼
Fabric group, overseeing its seven plants and 6000 employees.<ref>[https://www.nytimes.com/2004/10/19/classified/paid-notice-deaths-major-andrew.html New York Times - October 19, 2004]</ref> They developed a synthetic material with the name [[Sherpa fabric|Sherpa]] that resembles wool. Sherpa was a registered trademark of Collins & Aikman.<ref>{{Cite book|last=Wingate|first=Isabel Barnum|url=http://archive.org/details/fairchildsdictio00wing|title=Fairchild's dictionary of textiles|date=1979|publisher=New York : Fairchild Publications|others=Internet Archive|isbn=978-0-87005-198-2|pages=550}}</ref><ref><nowiki>''</nowiki>Sherpa is the original man - made pile fabric with the curly look . Lightweight , soft and warm . For coats inside and out . Pile of Creslan acrylic fiber . If the tag doesn't say “ Sherpa by Collins & Aikman , ” it isn't Sherpa . <nowiki>''</nowiki> [https://books.google.com/books?id=BtH_4dsNDqgC&q=S The New Yorker - Volume 37, Part 6 - Page 52books.google.co.in › books] [https://books.google.com/books?id=BtH_4dsNDqgC&q=S Harold Wallace Ross, William Shawn, Tina Brown · 1962]</ref><ref><nowiki>''Fabrics for Apparel Trades Collins & Aikman sells a variety of knitted , woven and tufted materials to garment manufacturers . ... Other divisions make pile fabrics for outerwear and coat linings ( marketed under trademarks such as SHERPA )''</nowiki>{{Cite book|url=https://books.google.com/books?id=SvIxAQAAIAAJ&q=Sherpa+Collins+|title=Good Housekeeping|date=1979|publisher=International Magazine Company|pages=64|language=en}}</ref><ref><nowiki>''</nowiki>The company also developed “ Sherpa , ” a lamb's - woollike material that has gained considerable success as a lining <nowiki>''</nowiki> [https://books.google.com/books?id=FsNPAQAAMAAJ&q=S Textile Leaders of the South - Page 265books.google.co.in › books] [https://books.google.com/books?id=FsNPAQAAMAAJ&q=S Marjorie Willis Young, L. P. Walker · 1963]</ref>
==History==
This was followed in July 2011 by a British [[High_Court_of_Justice|High Court]] ruling which put 24 C&A companies across 10 European countries into English administration proceedings, recognising that these companies operated as a cohesive unit and would need to be dealt with holistically.<ref>[http://www.chasecambria.com/site/journal/article.php?id=283 Chase Cambria Publishing]</ref>▼
Collins & Aikman began in 1891 when Charles M. Aikman, who joined Gibbons L. Kelty's home furnishings business in 1870, became partners with William Collins, with Kelty's interest being sold. The company went public in 1916 with the sale to Thomas Doody and Melville Curtis. The company acquired Bangor Mills of [[Pennsylvania]] in 1960 and Imperial Paper in 1971.<ref name="Funding Universe"/>
The [[Wickes Companies]] bought Collins & Aikman in 1987 for $1.16 billion. The next year [[The Blackstone Group]] and [[Wasserstein Perella & Co.|Wasserstein Perella]] bought Wickes and changed its name to WCI Holdings Corp., which in turn changed its name to Collins & Aikman in 1992.<ref name="Funding Universe"/>
==SEC Lawsuit==▼
On March 26th 2007 the [[U.S._Securities_and_Exchange_Commission|SEC]] filed civil fraud charges against C&A, David Stockman and eight other former C&A directors and members.<ref>[http://www.sec.gov/litigation/litreleases/2007/lr20055.htm SEC Press Release 2007]</ref> The suit alleged that C&A had inflated it's quarterly earnings from the end of 2001 to 2005, by using "round-trip" transactions with Elkin B MacCallum, a member of C&As board, and a supplier to C&A, to falsely increase reported indirect income. It then engaged in other acts of false accounting to further increase it's reported earnings. <ref>[http://www.sec.gov/litigation/complaints/2007/comp20055.pdf SEC Complaints]</ref>.▼
Also in 1992, Collins & Aikman moved its headquarters from California to [[Charlotte, North Carolina]].<ref name="Funding Universe">{{cite news|url=http://www.fundinguniverse.com/company-histories/collins-aikman-corporation-history/|title=History of Collins & Aikman|publisher=FundingUniverse|accessdate=December 19, 2018}}</ref>
In March 1998, Collins & Aikman submitted a site plan for a move by its headquarters to Northfield Hills Corporate Center in [[Troy, Michigan]]. The carpet and acoustic group, automotive fabrics and Akro floor mats were moving from [[Bloomfield Hills, Michigan]], and Dura Convertible Systems was moving from [[Madison Heights, Michigan]], while the Manchester Plastics unit acquired in 1996 and renamed Collins & Aikman Plastics was already in Troy.<ref>{{cite news|url=https://www.crainsdetroit.com/article/19980330/SUB/803300879/collins-aikman-to-consolidate-in-troy-site|title=Collins & Aikman to Consolidate in Troy Site|last1=Sherefkin|first1=Robert|last2=Gargaro|first2=Paul|work=[[Crain Communications|Crain's Detroit Business]]|date=March 30, 1998|accessdate=December 19, 2018}}</ref> The company kept about 100 employees in various departments in Charlotte, where it had operations for 25 years, until 2003.<ref>{{cite news|url=https://www.bizjournals.com/charlotte/stories/2003/06/16/story4.html|title=Collins & Aikman is cutting ties to Charlotte|last=Howard|first=J. Lee|work=[[Charlotte Business Journal]]|date=June 16, 2003|accessdate=December 19, 2018}}</ref> In 2002, after the acquisition of the Textron Automotive trim unit, the company announced plans to move its operations to Stephenson Highway, where the plastics unit was already located.<ref>{{cite news|url=https://www.crainsdetroit.com/article/20020114/SUB/201140882/collins-aikman-to-move-headquarters-elsewhere-in-troy|title=Collins & Aikman to move headquarters elsewhere in Troy|last=Strong|first=Michael|work=Crain's Detroit Business|date=January 14, 2002|accessdate=December 19, 2018}}</ref>
As a result of the case a judge found that the SEC is entitled to no special treatment regarding its discovery obligations when it initiates litigation.<ref>[http://www.sutherland.com/files/Publication/61958e9c-d774-495a-b717-06aa36b568b4/Presentation/PublicationAttachment/2255678d-0d24-4213-85bd-077afd519346/LITArticle4.1.09.pdf Law 360]</ref>▼
▲In early 2005 the firm had to review
After filing for bankruptcy in Europe in May 2005 and in the United States in July 2005, Collins & Aikman announced April 6, 2006 that it would close four North Carolina plants. This included one plant in [[Farmville, North Carolina|Farmville]] with 650 workers and three plants employing 590 in [[Person County, North Carolina|Person County]], where the company was the largest employer and had been in [[Roxboro, North Carolina|Roxboro]] since 1923. Three other North Carolina plants employing 1,244 would continue operating in [[Albemarle, North Carolina|Albemarle]], [[Old Fort, North Carolina|Old Fort]] and [[Montgomery County, North Carolina|Montgomery County]]. The fate of the [[El Paso, Texas]] plant and its 75 workers was uncertain.<ref>{{cite news|url=https://www.bizjournals.com/triangle/stories/2006/04/03/daily26.html|title=Collins & Aikman to close four N.C. plants, slash 1,240 jobs|last=Hogan|first=Patrick|work=[[Triangle Business Journal]]|date=April 6, 2006|accessdate=December 19, 2018}}</ref>
The Albemarle unit, started in the 1950s, became International Automotive Components in 2007.<ref>{{cite web|url=http://www.albemarlenc.gov/departments/economic-development/exisiting-industries/international-automotive-components|title=International Automotive Components|publisher=[[Albemarle, North Carolina]]|accessdate=December 19, 2018}}</ref> In September 2017 the Old Fort operation, with 700 employees, became part of a [[United Kingdom]]-based [[joint venture]] between Shanghai Shenda Co. Ltd. and International Automotive Components called Auria Solutions, Ltd., with U.S. headquarters in [[Southfield, Michigan]] and 21 plants in 10 countries.<ref>{{cite news|url=https://www.mcdowellnews.com/news/iac-plant-in-old-fort-is-now-named-auria/article_22fad29a-9ca9-11e7-869b-8bd17701f10e.html|title=IAC plant in Old Fort is now named Auria|last=Conley|first=Mike|work=[[McDowell News]]|date=September 18, 2017|accessdate=December 19, 2018}}</ref>
▲This was followed in July 2011 by a British [[
▲On March
▲The SEC settled with five of the defendants in 2010, with the settlement including David Stockman paying $7.2 million in settlement.<ref>[https://www.sec.gov/litigation/litreleases/2010/lr21491.htm SEC Press Releases 2010]</ref> As a result of the case a judge found that the SEC is entitled to no special treatment regarding its discovery obligations when it initiates litigation.<ref>[http://www.sutherland.com/files/Publication/61958e9c-d774-495a-b717-06aa36b568b4/Presentation/PublicationAttachment/2255678d-0d24-4213-85bd-077afd519346/LITArticle4.1.09.pdf Law 360]{{dead link|date=August 2017 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
==References==
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