The board of directors of performance textiles producer Malden Mills Industries, Inc. has unanimously voted to approve the sale of the company to Boston-based Gordon Brothers Group for $44 million. Malden Mills will continue normal manufacturing operations at both of its facilities in Lawrence, Massachusetts, and Hudson, New Hampshire.

The company has filed voluntary petitions for reorganisation under Chapter 11 of the US Bankruptcy Code. The sale is subject to higher and better offers, and completion of the sale is expected by the end of February, subject to court approval.

Commenting on the sale CEO, Michael Spillane, said, “The sale of Malden Mills to Gordon Brothers Group transitions the company into a state of permanent ownership and financial stability. This financial transaction will significantly improve the company’s balance sheet enabling Malden Mills to continue to serve our customers in both the commercial and military markets.”