Larry Liebenow, Quaker's president and CEO says that the company provided the seller with official notice of its decision to terminate the purchase and sale agreement. "Our proposed leasing arrangement should allow us to realize much of the reduction in our annual long-term operating costs that we had hoped to achieve by buying," Liebenow adds.

Quaker, which manufactures woven upholstery fabrics, plans to consolidate several of its existing operations into this single-story, modern manufacturing and warehousing facility. By the end of next year, the company plans to move four of the manufacturing and warehousing operations currently in leased facilities into this new plant--leaving a total of 2.4 million sf.