JANUARY 23, 2007 - Posted at 7:53 a.m. CST
CABOT, Ark. (AP) - Bancroft Apparel and Headwear Company, which has run a plant in Cabot since 1967, has filed for protection from its creditors under Chapter 11 bankruptcy and has apparently halted production.
The company specializes in headwear for the military. The Defense Department's procurement arm says Bancroft owes the government $2.5 million for 340,000 berets that were allegedly made with foreign materials and shipped sometime before March 2006.
Bancroft filed January 16th for protection from its creditors.
Cabot Mayor Eddie Joe Williams says Bancroft's building is for sale or lease and that it appears no lines are running at the factory. Williams says he was not informed by the company of its plans.
There was no answer at the plant this morning. An answering machine message said the plant would be closed December 22 though January 2 for Christmas vacation.