Fruit of the Loom: Taxes won’t be paid on time

Published 12:00 am Saturday, January 29, 2000

VIDALIA, La. — Fruit of the Loom probably won’t pay the more than $2 million in taxes it owes Concordia Parish by the May 31 deadline, a company spokesperson said Friday.

The company, whose Vidalia Apparel distribution center, is Concordia’s biggest manufacturer, filed Chapter 11 bankruptcy in December 1999. That left cash-strapped agencies like the Concordia Parish Police Jury and School District wondering when — and if — those taxes would be paid.

&uot;Like any other pre-petition expenses, those taxes will be addressed in a reorganization (plan) to be filed at a later date,&uot;&160;said Lauren Teggelaar, a New York-based spokesman for Fruit of the Loom. She would not estimate when that plan would be filed.

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Taxes were due Dec. 31, and the company will be charged a 1-percent penalty each month it is not paid through the end of May, according to the Tax Assessor’s Office.

The Concordia Parish School District is already freezing some non-classroom positions to help make up for the $700,000 it is owed.

&uot;We’re looking to see where we can take up the slack,&uot;&160;said Tom O’Neal, the district’s director of business affairs. For example, when O’Neal’s left the system recently, she was not replaced.

And as of Friday, O’Neal was still trying to see where the district can make more cuts in areas such as maintenance without impacting the classroom.

A revised budget that includes such cuts will be probably be presented to the School Board in April for approval, O’Neal said.

The Concordia Parish Police Jury is owed $564,000 in taxes by Fruit of the Loom. A meeting of its Finance Committee has been called for Feb. 9 to, among other things, discuss where the budget can be tightened. Committee recommendations will probably be presented to the full jury Feb. 14.

Assistant District Attorney Madeline Gibbs is also supposed to investigate what process the jury would need to use to get the taxes the company owes and make a presentation to the jury Feb. 14.

The jury is mandated by the state to pay certain expenses, such as prisoner care, so those cannot be cut, said Juror Randy Temple, Finance Committee chair.

There is little fat in the jury’s budget, Temple said. &uot;We’re aware that it is going to create some financial problems,&uot;&160;he said. &uot;We will have to revise our budget.&uot;

The company also owes the Town of Vidalia $96,000 in taxes, but Mayor Hyram Copeland would not comment.