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


                                 August 16, 2007
                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 1.03  Bankruptcy or Receivership

On August 17, 2007, Quaker Fabric Corporation announced that it and its wholly
owned subsidiary, Quaker Fabric Corporation of Fall River (together, the
"Debtors"), had filed voluntary petitions for relief under Chapter 11 of the
U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware
(Case No. 07-11146). The Debtors' affiliates outside the United States were not
included in the Chapter 11 filing. The Debtors remain in possession of their
assets and properties as "debtors-in-possession" pursuant to sections 1107(a)
and 1108 of the Bankruptcy Code, and during the Chapter 11 process, the Debtors
will continue the liquidation process they began in July. On August 16, 2007,
the Debtors reached an agreement for up to $1,650,000 in new
debtor-in-possession (DIP) financing. Upon Court approval, this DIP financing
will provide sufficient funding during the Chapter 11 process. A copy of the
press release is filed as an exhibit to the Report on Form 8-K and is
incorporated here by reference.

Item 9.01 Financial Statements and Exhibits

(c)  Exhibits

99.1     Registrant's Press Release dated August 17, 2007



                                   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: August 17, 2007             /s/   Paul J. Kelly
                                  -----------------------------------------
                                                 Paul J. Kelly
                                    Vice President - Finance and Treasurer






                                                                   EXHIBIT INDEX


99.1     Registrant's Press Release dated August 17, 2007

EX-99.1

                                                                    Exhibit 99.1

          Quaker Fabric Files Voluntary Petition for Relief
               under Chapter 11 of the Bankruptcy Code

    FALL RIVER, Mass.--(BUSINESS WIRE)--Aug. 17, 2007--QUAKER FABRIC
CORPORATION (NASDAQ Symbol: QFAB), a leading supplier of upholstery
fabrics for furniture markets in the United States and abroad,
announced today that it and its wholly owned subsidiary, Quaker Fabric
Corporation of Fall River, have filed voluntary petitions for relief
under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy
Court for the District of Delaware. Quaker's affiliates outside the
United States were not included in the Chapter 11 filing.

    On July 2, 2007, the Company announced that it likely would
commence an orderly liquidation of its business and a sale of its
assets and that any such winding up and liquidation would not generate
sufficient funds to permit any payment to holders of its common stock.
On July 9, 2007, the Company retained an experienced liquidation
advisory firm to consult with management on the liquidation of the
assets of the Company in a manner intended to yield the greatest
return to the Company's creditors. This process has been ongoing, with
the Company seeking bids from qualified buyers for the purchase of the
Company as a whole, as well as on each asset class, including
machinery and equipment, raw material and finished goods inventory,
accounts receivable, intellectual property and real estate. During the
Chapter 11 proceedings, this process will continue under court
supervision. In addition, the Company has reached an agreement for up
to $1,650,000 in new debtor-in-possession (DIP) financing. Upon Court
approval, this DIP financing will provide sufficient funding during
the Chapter 11 process.

    The Company commenced its annual two-week planned shutdown on June
29, 2007 and did not have the financing needed to resume operations on
July 16, which would otherwise have marked the end of the shutdown
period. On July 2, the employment relationships of substantially all
of the Company's 930 employees were terminated.

    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, ACTUAL RESULTS
MAY DIFFER MATERIALLY FROM THOSE PROJECTED. FOR A FURTHER DISCUSSION
OF THESE FACTORS, SEE THE COMPANY'S 2006 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