Pillowtex, which had employed about 8,000 people in the United States and Canada to make products under the Cannon, Fieldcrest and Royal Velvet brands, said it did not have the cash to continue operations.

The plants being closed include textile manufacturing and distribution facilities.

"There ain't no Pillowtex. I ain't got no insurance. ... My pension's gone, everything's gone," said Janet Patterson, 56, who had worked at Plant No. 6 in Concord since 1965.

Patterson was among about 35 workers who gathered at the headquarters of the Union of Needletrades, Industrial and Textile Employees after they learned they would lose their jobs.

Workers were told they have no health insurance effective immediately and will not be paid for work they did the last couple of weeks, she said.

"I've been there 38 years hemming sheets. What are we going to get? I have custody of my five grandchildren," Patterson said.

Ruth Crisco, a 10-year Pillowtex employee, said workers have lost everything, "their livelihood, their homes, their cars. Bank of America's getting everything back."

Bank of America is Pillowtex's largest creditor.

Pillowtex emerged from bankruptcy in May 2002, but continued to face financial troubles. It put itself up for sale earlier this year to try to avert bankruptcy.

In a news release Wednesday, Pillowtex said it would seek protection under Chapter 11 of the bankruptcy code, then wind down its business and dispose of assets.

About 1,200 employees in distribution, support services, accounting and human resources will be retained initially to assist with bankruptcy proceedings and employee communications, the company said.

"Since emerging from bankruptcy in May 2002, we have worked diligently to attempt to restructure our operations and regain profitability," said Michael Gannaway, chairman and chief executive of Pillowtex.

But he said that soft consumer demand and intense foreign competition, among other problems, meant the company could not operate profitably.

In March, Pillowtex retained Credit Suisse First Boston to help explore alternatives aimed at maintaining the company as a stand-alone entity, Gannaway said. When that failed, Pillowtex tried to find a buyer but no definitive agreement could be reached, he said.

"Facing these very difficult circumstances, closing our facilities and preparing for bankruptcy has emerged as our only viable course of action," Gannaway said in a statement.

Jim Lemons, president of the North Carolina Center for Applied Textile Technology, a Gastonia community college, said there are two or three pieces of Pillowtex that buyers might want, but the company had been adamant about being sold in one piece.

A British fabric company, Broome & Wellington, has said it made an offer of $350 million to $400 million to purchase Pillowtex. The status of that offer wasn't immediately clear Wednesday.

Last Friday, Pillowtex received a six-day extension from its lenders, which gave it until Thursday to arrange a sale that would have averted bankruptcy.