Vidalia Mills Faces Public Auction as $32.5 Million Debt Looms
Angela Velasquez
6 min read
The dream to restart premium denim manufacturing in the U.S. is up for auction.
The property of Vidalia Mills, the vertical denim mill that opened in Vidalia, La. in 2018, is scheduled to go up for auction by the Concordia Parish sheriff’s office on April 9, according to the Concordia Sentinel.
The Concordia Sentinel reports that, according to 7th Judicial District Court documents, the mill owes approximately $32.5 million in principal, interest, and late charges as of Nov. 14, 2024 to the Jefferson Financial Federal Credit Union and Greater Nevada Credit Union.
In 2018, Vidalia Mills ( also known as Vidalia Industrial Facilities, LLC) received a $25 million loan from Jefferson Financial Federal Credit Union and a $5 million loan from Greater Nevada Credit Union for equipment and working capital, the Concordia Sentinel reported. Additionally, the U.S. Department of Agricultural provided loan support through its Business and Industry Guaranteed Load Program.
The sale will include 81.87 acres of land which was purchased from the town in 2017 for $12 million, the 900,000-square foot former Fruit of the Loom distribution center that Vidalia Mills retrofitted for its manufacturing facility and numerous pieces of equipment.
In 2019, Dan Feibus, Vidalia Mills CEO, acquired 40 American Draper X3 selvedge looms from the shuttered White Oak facility in Greensboro, N.C. Vidalia Mills went on to produced U.S.-made selvedge for brands like Imogene & Willie, Devil-Dog Dungarees and Trinidad3. In a Kingpins25 interview in 2020, Feibus talked about how “lot of denim aficionados have sort of a mystical bond” with the looms and that producing selvedge denim in the U.S., ” feels like the right thing to do.”
“Devil-Dog Dungarees was proud to incorporate Vidalia Mills denim into our special 75th-anniversary jean, a limited release that paid tribute to both our brand’s history and the legacy of American-made denim,” said Jeff Rosenstock, Devil-Dog Dungarees president. “As the only mill producing premium selvedge denim on American soil, Vidalia’s craftsmanship and innovation helped preserve an important part of our industry’s heritage. Vidalia represented a rare commitment to domestic textile production, and its closure is a significant loss for the U.S. denim industry.”
Concordia Sentinel further outlined Vidalia Mills’ previous financial troubles including $450,000 in back rent which was eventually paid in five installments, and a civil suit from Process Service Specialist LLC in 2024. Citing court papers, Concordia Sentinel said the company sued Vidalia Mills for $711,834.29. Though Vidalia Mills made a payment of $222,576.69 to Process Service Specialist, it refused to pay the $711,834.29 balance.
In September 2024, Vidalia Mills announced a rebrand and strategic capital raise to secure financial health and support growth. At the time, Vidalia aimed to raise $7.75 million to overcome funding delays and “ignite technical innovation and get the production system to full-scale operation by the end of the year.” Vidalia said it hoped to attract new investors, pinning its hardships on its original investors.
“While we have always been focused on building a company rooted in sustainability and innovation, the lack of timely funding from our initial investors has created significant financial challenges for us,” Feibus said in a press release at the time. “We remain confident in our business model, and this capital raise is a key step toward overcoming these obstacles and positioning Vidalia for long-term success.”
Vidalia Mills also entertained the idea of going public. The company said the move could provide the necessary capital and market visibility to accelerate growth, enhance operations, and “advance its mission of leading the domestic and sustainable textile revolution.”
However, the turnaround never took shape. In October, Vidalia announced the layoff of 35 employees as part of a strategic operational shift aimed at increasing productivity and enhancing Pima yarn production capabilities. The mill had begun to invest in the installation of advanced carding and opening equipment that will allow it to triple Pima yarn production.
A month later, The Natchez Democrat reported that Vidalia Mills had closed before Thanksgiving. A company spokesperson told the community newspaper that the closure was temporary while the company searched for new investors. The spokesperson said management was working to fund past payroll issues and was planning to reopen at the start of this year. They added that Vidalia was “well positioned to benefit from changes in trade and manufacturing policy outlined by (the) incoming Trump Administration.”
Vidalia’s entrance onto the scene came after the closing of mills like Cone Denim’s White Oak facility 2017 and DNA Textile Group in Columbus, Ga., ending denim production in 2018. During Vidalia Mills’ initial days, Feibus said he wanted to set an example for the sector and inspire more companies to pursue “Made in USA” denim.
In September 2019, during a “Farm to Fashion” supply chain tour that Sourcing Journal attended, Feibus laid out the Vidalia Mills game plan. Open-end yarn spinning would begin in November; selvedge denim production in December; ring-spun yarn in January, and the foam dye system from Temsan, a Turkish manufacturer of air-conditioning systems for spinning, weaving and knitting mills, to be integrated by April. Capacity would to be 8 million to 9 million yards per year.
Along with its “Made in USA” message, Vidalia Mills highlighted efforts to offer sustainable, value-added denim.
The mill, which used 100 percent certified sustainable E3 cotton from farm-direct sourcing in its denim, formed a strategic relationship with Lubrizol Corp. to work closely to maximize the performance and eco-friendly attributes of Lubrizol’s X4zol-J elastomeric fiber in Vidalia’s fabrics. A state-of-the-art slasher yarn dye preparation system reduced the amount of water used in fabric dyeing. The mill also created a close-loop water system for zero discharge.
Vidalia Mills said it planned to employ 600 people once fully operational. Feibus noted that significant local government incentives would the overhead for hiring and training employees.
Concordia Sentinel reported that in exchange for job performance and the potential new economic activity the town agreed to grant $8 million back to Vidalia Mills for approved capital improvements to the site. In June 2019, then Concordia Economic Development Executive Director Heather Malone said $7,631,589 of that $8 million had been spent and one employee had been hired. Concordia Sentinel reported that the town had collected most of the money from Vidalia Mills.
In 2020, the mill said it would require more employees than originally planned and was searching for machine operators and maintenance technicians.
Feibus and Vidalia’s press contacts did not respond to Sourcing Journal’s request for comment via email and Linkedin.
