Canada: Textile companies look at filing for bankruptcy

Two textile companies in northern New Brunswick have filed for protection from their creditors and are one step closer to bankruptcy.

Representatives from sister companies Atlantic Yarns and Atlantic Fine Yarns and a trustee met with the company's union Monday to talk about the future.

About 365 employees work at the two textile mills in Atholville and Pokemouche.

Officials are blaming the Canadian dollar's surge against the U.S. greenback for the current difficulties competing in world markets, said Pat Roy, representative for the Communications, Energy and Paperworkers Union of Canada.

Employees have been told that the companies need to restructure, said Roy, who attended Monday's meetings, and that the businesses will take 30 days to try to turn things around before people are laid off or the mills shut down.

Since opening in 1998, both companies have been heavily subsidized by provincial taxpayers.