JANUARY 26, 2007 - Posted at 7:57 a.m. CST
CABOT, Ark. (AP) - The Bancroft Cap Company says it will reopen its Cabot plant on Monday. The plant closed for the holidays and did not reopen, and the company filed for Chapter 11 bankruptcy. The company has issued a news release saying it had to prepare its finances before it could start production again. City officials had said they believed the plant was closed.
The company makes hats and caps for the military and has operated in Cabot since 1967.
The Defense Supply Center Philadelphia, a procurement arm of the Department of Defense, says Bancroft owes the government $2.5 million for supplying 340,000 caps that contained foreign materials. Bancroft says a supplier may have provided wool from outside the U.S. and not disclosed its origin.