8-K

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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


                                January 23, 2006
                Date of Report (Date of earliest event reported)


                            QUAKER FABRIC CORPORATION
             (Exact name of registrant as specified in its charter)



        Delaware                       1-7023                    04-1933106
(State of incorporation)      (Commission File Number)        (I.R.S. Employer
                                                             Identification No.)

         941 Grinnell Street, Fall River, Massachusetts             02721
            (Address of principal executive offices)              (Zip Code)


        Registrant's telephone number, including area code (508) 678-1951



         (Former name or former address, if changed since last report.)


     Check the appropriate box below if the Form 8-K filing is intended to
     simultaneously satisfy the filing obligation of the registrant under any of
     the following provisions:

     [ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)

     [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17CFR 240.14a-12)

     [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))

     [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))



Item 8.01 Other Events

The following information is filed under Item 8.01 of Form 8-K:

On January 23, 2006, Quaker Fabric Corporation of Fall River ("Quaker"), a
wholly owned subsidiary of Quaker Fabric Corporation (the "Registrant"), entered
into a five-year, Commercial Cooperation Agreement with Hangzhou Zhongwang
Fabric Products Co., Ltd., a fabric manufacturer located in Hangzhou, China (the
"Zhongwang Agreement"). The Zhongwang Agreement provides Quaker with the
exclusive right to purchase and sell into the world market such upholstery
fabrics as are developed jointly by Quaker and Zhongwang and produced in
Zhongwang's manufacturing facilities in China. The Zhongwang Agreement also
provides for Zhongwang to use its best efforts to sell into the Chinese market
upholstery fabrics designed and manufactured by Quaker in the United States.

On January 23, 2006, Quaker Fabric Corporation issued a press release announcing
execution of the Zhongwang Agreement. A copy of the press release is attached to
this Report on Form 8-K as Exhibit 99.1 and incorporated herein by reference.


Cautionary Statement Regarding Forward-Looking Information

Statements contained in this report, as well as oral statements made by the
Company that are prefaced with the words "may," "will," "expect," "anticipate,"
"continue," "estimate," "project," "intend," "designed" and similar expressions,
are intended to identify forward-looking statements regarding events, conditions
and financial trends that may affect the Company's future plans of operations,
business strategy, results of operations and financial position. These
statements are based on the Company's current expectations and estimates as to
prospective events and circumstances about which the Company can give no firm
assurance. Further, any forward-looking statement speaks only as of the date on
which such statement is made, and the Company undertakes no obligation to update
any forward-looking statement to reflect events or circumstances after the date
on which such statement is made. As it is not possible to predict every new
factor that may emerge, forward-looking statements should not be relied upon as
a prediction of the Company's actual future financial condition or results.
These forward-looking statements like any forward-looking statements, involve
risks and uncertainties that could cause actual results to differ materially
from those projected or anticipated. Such risks and uncertainties include
product demand and market acceptance of the Company's products, regulatory
uncertainties, the effect of economic conditions, the impact of competitive
products and pricing, including, but not limited to, imported furniture and
furniture coverings sold into the U.S. domestic market, foreign currency
exchange rates, changes in customers' ordering patterns, and the effect of
uncertainties in markets outside the U.S. (including Mexico and South America)
in which the Company operates.



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Item 9.01 Financial Statements and Exhibits

(c) Exhibits

99.1  Registrant's press release dated January 23, 2006







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                                   SIGNATURES


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.




                                                   QUAKER FABRIC CORPORATION
                                                          (Registrant)



Date: January 23, 2006                             /s/ Paul J. Kelly
                                                   -----------------------------
                                                   Paul J. Kelly
                                                   Vice President - Finance and
                                                   Treasurer







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                                                                   EXHIBIT INDEX

99.1    Registrant's press release dated January 23, 2006







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EX-99.1

                                                                    EXHIBIT 99.1


         Quaker Announces Commercial Cooperation Deal with Chinese Firm


     FALL RIVER, Mass.--(BUSINESS WIRE)--Jan. 23, 2006--QUAKER FABRIC
CORPORATION (NASDAQ Symbol: QFAB) today announced the signing of a strategically
significant commercial agreement with Hangzhou Zhongwang Fabric Products
Company, Ltd, one of China's leading upholstery fabric manufacturers.
     "This new business relationship represents an important milestone in our
ongoing efforts to reshape Quaker's strategy and market position to reflect the
realities of today's global market. We have been working on this project for a
considerable period of time. Our objective is to recapture that portion of the
U.S. and world markets that has moved to Chinese sourcing over the past few
years by offering a unique program to our worldwide customers - one that
provides a differentiated product range to them that they can count on to meet
U.S. and international quality standards. Our intent is to build a sourcing
program superior to those currently being offered that will enable us to offer
both roll goods and cut and sewn kits to our customers, for direct shipment
around the world and/or for further processing in China. To accomplish this,
Quaker will be providing all of the design work, as well as a transfer of
technical and technological support to Hangzhou Zhongwang. Hangzhou Zhongwang
will also become Quaker's marketing arm for the distribution of Quaker's
U.S.-manufactured products to the upper end of the Chinese furniture market,"
commented Larry A. Liebenow, Quaker's President and CEO.







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     "Meanwhile, we are committed to growing our sales based on our U.S.
production. To that end, we will be continuing to aggressively develop other
products that for both strategic and economic reasons are best produced in our
Fall River-based manufacturing facilities. These products include both new
fabrics for those domestic and international residential customers looking for
rapid delivery on custom products, as well as new products for the contract and
outdoor markets, both of which place a premium on the kind of technological
expertise Quaker brings to the design and development process," Mr. Liebenow
added.
     Quaker Fabric Corporation is a leading manufacturer of woven upholstery
fabrics for furniture markets in the United States and abroad, and the largest
producer of Jacquard upholstery fabric in the world.
     THIS PRESS RELEASE CONTAINS "FORWARD LOOKING STATEMENTS," AS THAT TERM IS
DEFINED IN THE FEDERAL SECURITIES LAWS. THE READER IS CAUTIONED THAT SUCH
STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND THAT, AS A RESULT OF
VARIOUS FACTORS, INCLUDING, BUT NOT LIMITED TO, THE LEVEL OF CUSTOMER DEMAND FOR
THE COMPANY'S PRODUCTS, HIGHER THAN ANTICIPATED COSTS, ANY INTERRUPTION IN THE
SUPPLY OF RAW MATERIALS USED BY THE COMPANY AND LOWER THAN ANTICIPATED
PRODUCTION RATES, ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE PROJECTED. FOR
A FURTHER DISCUSSION OF THESE FACTORS, SEE THE COMPANY'S 2004 FORM 10-K.


     CONTACT: Quaker Fabric Corporation
              Larry A. Liebenow, 508-646-2264
              Paul J. Kelly, 508-646-2251
              Cynthia L. Gordan, 508-646-2261







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