Paragon Trade Brands To Move To Atlanta

Paragon Trade Brands, a Federal Way disposable-diaper maker, said today it will move its corporate headquarters to Atlanta.

The move affects about 150 employees at Paragon's Federal Way office. Company officials would not supply details this morning, saying they were explaining the move to their employees.

Paragon, the country's third-largest diaper maker, makes "private label" diapers for supermarket and discount chains. It employs about 1,500 nationwide, and recently announced the opening of a South Carolina plant to make feminine-hygiene products.

Bobby Abraham, chairman and chief executive officer of Paragon, said in a statement that relocating the headquarters would make the company more efficient by being closer to its manufacturing facilities and suppliers.

In addition to the North Carolina plant, the company recently acquired Pope & Talbot's disposable-diaper business, which has manufacturing facilities in California, Georgia and Ohio. That acquisition expanded Paragon's market share to about 19 percent.

The move will begin late in the first quarter and is expected to be completed by June 30, 1996. A pre-tax charge against profits for the relocation and the Pope & Talbot integration will be taken in the first quarter ending March 31, 1996.

Dan Nelson, an analyst with Ragen McKenzie, said he couldn't estimate the impact of the charge.

He estimated that about a third of the headquarters staff will make the move to Atlanta.

"I applaud the move, though it's a tough thing to do," Nelson said. "The only risk is that they might lose a few key people along the way."

Paragon returned to profitability in last year's third quarter, announcing profits of 22 cents per share after two quarters of losses.