The New York Stock Exchange suspended trading in Pillowtex ( PTX), 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.