The

New York Stock Exchange

suspended trading in

Pillowtex

(PTX) - Get Report

, after the bed and bath furnishings maker filed for Chapter 11 bankruptcy protection earlier in the day.

Shares of Pillowtex, which traded above $34 in December 1998, closed on Monday at a new 52-week low of 50 cents.

The Dallas-based company called its bankruptcy filing a "necessary component" of its plan to create a sustainable capital structure, enhance manufacturing operations and improve profitability.

Pillowtex also said it received a commitment for $150 million in financing from a group of lenders led by

Bank of America

. The funding, which is subject to the approval of the U.S. bankruptcy court in Delaware, will be used to fund the company's ongoing business operations.