8-K

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

Date of Report (Date of Earliest Event Reported): November 14, 2000

PILLOWTEX CORPORATION
(Exact Name of Registrant as Specified in its Charter)

TEXAS
(State of
Incorporation) 1-11756
(Commission
File Number) 75-2147728
(IRS Employer
Identification No.)

4111 Mint Way, Dallas, Texas             75237
(Address of Principal Executive Offices)      (Zip Code)

             Registrant's telephone number, including area code:     (214) 333-3225


ITEM 3.    Bankruptcy or Receivership.

          On November 14, 2000, Pillowtex Corporation ("Pillowtex") and substantially all of its domestic subsidiaries filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). Later the same day, the Bankruptcy Court entered an interim order authorizing Pillowtex and such subsidiaries to enter into a $150 million debtor-in-possession financing facility (the "DIP Facility") with Bank of America, N.A., as agent, for a syndicate of financial institutions comprised of certain of Pillowtex's existing senior lenders. Pursuant to such order, up to $60 million may be utilized under the DIP Facility, consisting of up to $35 million in post-petition loans and $25 million in letters of credit, on an interim basis pending a final hearing to approve the DIP Facility. The Bankruptcy Court also approved the payment of certain pre-petition obligations, including employee salaries, wages and benefits, obligations to customers and certain critical trade payables.

          A copy of the press release issued by Pillowtex on November 14, 2000, announcing its filing with the Bankruptcy Court is attached hereto as Exhibit 99.1 and incorporated herein by reference.

ITEM 5.     Other Events.

          On November 14, 2000, Pillowtex was notified by the New York Stock Exchange (the "NYSE") that (i) the NYSE has determined to suspend trading of Pillowtex's common stock and (ii) the NYSE intends to file an application with the Securities and Exchange Commission to delist Pillowtex's common stock in accordance with its applicable procedures. Such actions are being taken by the NYSE in view of the fact that Pillowtex has filed a voluntary petition for reorganization under chapter 11 of the U.S. Bankruptcy Code.

ITEM 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

     (c)       Exhibits:

Exhibit Number		Exhibit
99.1	Press release, dated November 14, 2000

SIGNATURE

          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, hereunto duly authorized.

PILLOWTEX CORPORATION

By:  /s/ John F. Sterling
Name:   John F. Sterling
Title:    Vice President and General
            Counsel

Dated: November 16, 2000

INDEX TO EXHIBITS

Exhibit Number		Exhibit
99.1	Press release, dated November 14, 2000.

EX-99.1

Exhibit 99.1

NEWS RELEASE

November 14, 2000

Contacts: Jaime Vasquez
214-333-3225 X 529

Leslie Glazer
BSMG Worldwide
212-445-8226

Web Address:
www.pillowtex.com
www.royalvelvet.com

FOR IMMEDIATE RELEASE

Pillowtex Corporation Files Voluntary Chapter 11 Petition

Dallas, Texas, November 14, 2000 - Pillowtex Corporation (NYSE: PTX) today announced that it has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Pillowtex called the filing a necessary component of its strategy to create a sustainable capital structure, enhance its manufacturing operations, and improve its profitability.

"While the decision to file a Chapter 11 petition was not an easy one, the Board of Directors determined that it was the best means of obtaining the financial flexibility needed to address our economic and competitive challenges," said Chairman Ralph La Rovere. "We are committed to using the 'breathing room' provided under Chapter 11 to implement a strategic plan designed to ensure the long term viability of our Company for the benefit of our employees, customers, vendors and the communities in which we operate," he added.

Anthony T. Williams, President and Chief Operating Officer, further noted, "Pillowtex enjoys a portfolio of leading brand names, solid relationships with growing retailers, and a talented work-force. We are moving quickly to build on these assets and position the Company to be the undisputed leader in customer service."

- more -

- 2 -

Pillowtex has received a commitment for $150 million in Debtor-in-Possession (DIP) financing from a group of lenders led by Bank of America. The financing, which is subject to approval by the Court, will be used to fund ongoing business operations.

The Company intends to operate in the normal course of business during the Chapter 11 case and will continue payment of employee salaries, wages and benefits, and will honor existing customer-related practices. The U.S. Bankruptcy Code allows a company that is subject to a Chapter 11 filing to continue to operate its business as usual and provides special protections for any creditors, employees and others who perform services or provide goods to that company after the filing.

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by such statements. Such risks and uncertainties may be attributable to the following factors among others: significant leverage; restrictions imposed by the terms of the Company's debt; the price and availability of raw materials; general retail industry conditions; and the reliance on certain key customers. These and other such factors are discussed in greater detail under the caption "Risk Factors" in Pillowtex' most recent Form 10-K.

Pillowtex Corporation, with annual sales in excess of $1.4 billion, manufactures and markets home furnishings for the bedroom and bathroom under such industry leading brand names as ROYAL VELVETÒ , CANNONÒ , FIELDCRESTÒ , CHARISMAÒ , TOUCH of CLASSÒ , ROYAL FAMILYÒ and ROYAL VELVET BIG and SOFTÒ . Pillowtex Corporation operates a network of manufacturing and distribution facilities in the U.S. and Canada with approximately 13,000 employees.

# # #