<SEC-DOCUMENT>0000950123-11-017107.txt : 20110613
<SEC-HEADER>0000950123-11-017107.hdr.sgml : 20110613
<ACCEPTANCE-DATETIME>20110223155500
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950123-11-017107
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20110223

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UNIFI INC
		CENTRAL INDEX KEY:			0000100726
		STANDARD INDUSTRIAL CLASSIFICATION:	TEXTILE MILL PRODUCTS [2200]
		IRS NUMBER:				112165495
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			0626

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		7201 WEST FRIENDLY RD
		STREET 2:		P O BOX 19109
		CITY:			GREENSBORO
		STATE:			NC
		ZIP:			27419-9109
		BUSINESS PHONE:		9192944410

	MAIL ADDRESS:	
		STREET 1:		7201 W FRIENDLY RD
		STREET 2:		PO BOX 19109
		CITY:			GREENSBORO
		STATE:			NC
		ZIP:			24719-9109

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AUTOMATED ENVIRONMENTAL SYSTEMS INC
		DATE OF NAME CHANGE:	19720906
</SEC-HEADER>
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<TYPE>CORRESP
<SEQUENCE>1
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Unifi, Inc.</B><BR>
P.O. Box 19109<BR>
7201 West Friendly Avenue<BR>
Greensboro, NC 27419-9109
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">February&nbsp;23, 2011
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">VIA EDGAR
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
450 Fifth Street, N.W.<BR>
Washington, D.C. 20549

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="95%">&nbsp;</TD>
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<TR></TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">RE:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Unifi, Inc. Form&nbsp;10-K for the fiscal year ended June&nbsp;27, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">File Date: September&nbsp;10, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">File No.&nbsp;001-10542</TD>
</TR>
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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ladies and Gentlemen:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to the comments to the Annual Report on Form 10-K (the &#147;2010 Form 10-K&#148;) of
Unifi, Inc. (the &#147;Company&#148;) for the fiscal year ended June&nbsp;27, 2010 received from the Staff (the
&#147;staff&#148;) of the Division of Corporation Finance of the Securities and Exchange Commission (the
&#147;Commission&#148;) in a letter from Jennifer Thompson, dated February&nbsp;9, 2011 (the &#147;Comment Letter&#148;).
The discussion below is presented in the order of the numbered comments in the Comment Letter and
we have reproduced your comments (in italicized font) for ease of reference.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s responses to the staff&#146;s comments are as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Contractual Obligations, page 55</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We read in footnote 12 on page 90 that you have a $2.8&nbsp;million
purchase obligation for extrusion lines and a $1.5&nbsp;million commitment
for the construction of your recycled polyester chip facility in
Yadkinville, North Carolina. Please reconcile these purchase
obligations with the amounts included in your contractual obligations
table.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Response to Comment 1</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The purchase obligations noted in footnote 12 were discussed in Management&#146;s Discussion and
Analysis of Financial Condition and Results of Operations (&#147;MD&#038;A&#148;) in the Liquidity and
Capital Resources section of the 2010 Form 10-K as follows:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;As part of the projected capital expenditures, the Company has started investing in
capital projects related to the backward supply chain integration for its 100% recycled
Repreve<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> product. The Company expects these projects to be completed by the third quarter
of fiscal year 2011. The total investment in these capital projects is expected to be
approximately $8&nbsp;million of which the Company has incurred $1.2&nbsp;million as of June&nbsp;27,
2010.&#148;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>However, these purchase obligations were inadvertently omitted from the &#147;Contractual
Obligations&#148; table in MD&#038;A. In future filings, the Company will comply with the requirements
of Item&nbsp;303(a)(5) of Regulation&nbsp;S-K, and the Contractual Obligations table of MD&#038;A will
include such obligations.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>2. Investments in Unconsolidated Affiliates, page 73</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note the condensed financial information presented on page 33 for
your joint venture, Parkdale America, LLC (&#147;PAL&#148;) which is accounted
for as an equity method investment. Please provide us with your
significance tests for PAL as described in Rules&nbsp;1-</I><I>02(w)</I><I> and 3-09 of
Regulation&nbsp;S-X, and tell us what consideration you gave to providing
Rule&nbsp;3-09 financial statements for PAL.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Response to Comment 2</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The significance tests for PAL at the Company&#146;s fiscal year end of June&nbsp;27, 2010 for the
first condition set forth in Rule&nbsp;1-02(w) and for the 12&nbsp;months ending June&nbsp;27, 2010 for the
third condition set forth in Rule&nbsp;1-02(w), substituting 20&nbsp;percent for 10&nbsp;percent, are as
follows:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="80%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Amounts in thousands</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 27, 2010</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Condition (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment in PAL</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">65,446</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Advance to or from PAL</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total investment and advances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">65,446</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consolidated total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">504,465</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Percent Investment in PAL to Consolidated total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.97</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Condition (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PAL income before taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,660</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unifi, Inc percentage ownership</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Unifi, Inc.&#146;s share of PAL&#146;s income before taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,805</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unifi, Inc.&#146;s consolidated net income before taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,371</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Percentage of PAL income before taxes to Unifi, Inc.&#146;s
income before taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">69.70</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As a result of the Company&#146;s share of PAL&#146;s earnings being greater than 20% of the Company&#146;s
income before taxes, the Company intends to provide audited financial statements for PAL, in
accordance with the timing requirements set forth in Rule&nbsp;3-09(b)(2).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PAL has a fiscal year end which ends on the nearest Saturday to December&nbsp;31<SUP style="FONT-size: 85%; vertical-align: text-top">st</SUP>.
For fiscal year 2010, PAL&#146;s fiscal year end date is January&nbsp;1, 2011, which is more than 90
days after the Company&#146;s fiscal year end date of June&nbsp;27, 2010 and as such the Company&#146;s
Annual Report dated June&nbsp;27, 2010 will be amended to include the audited financial statements
of PAL on or before April&nbsp;1, 2011 in accordance with Rule&nbsp;3-09(b)(2).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In future filings, the Company will disclose its intent to provide PAL&#146;s audited financial
statements via an amendment to its Form 10-K in fiscal years in which PAL is determined to be
significant in accordance with Regulation&nbsp;S-X.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>7. Assets Held for Sale, page 85</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note your gain from sale of nitrogen credits of $1.4&nbsp;million during
fiscal year 2010. We also note at the bottom of page 36 that this
gain relates to the Kinston sales agreement discussed in this
footnote. Please describe this transaction to us and tell us your
basis in GAAP for recording this gain. Please also explain how this
transaction relates to the $1,350,000 recorded as assets held for sale
as of June&nbsp;28, 2009.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Response to Comment 3</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On September&nbsp;30, 2004, the Company completed its acquisition of polyester filament
manufacturing assets and inventory located in Kinston, North Carolina (&#147;Kinston&#148;) from
INVISTA S.a.r.l. (&#147;INVISTA&#148;). As part of the acquisition, the Company obtained waste water
discharge permits (&#147;nitrogen credits&#148;) issued to INVISTA by the North Carolina Department of
Environmental and Natural Resources (&#147;DENR&#148;). The nitrogen credits were specifically related
to the discharge of</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>waste water into the Neuse River and were only applicable to a limited
number of other emitters into the Neuse River.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During the second quarter of fiscal year 2008, the Company negotiated an agreement with E.I.
DuPont de Nemours (&#147;DuPont&#148;) to sell the plant and equipment located in Kinston. On March
20, 2008, the Company sold the plant and equipment located in Kinston to DuPont. Per the
sales agreement with DuPont, the Company retained the right to sell certain idle polyester assets
(the &#147;Retained Assets&#148;) and a portion of the nitrogen credits in excess of the amounts
required to operate the site. The Company retained the rights to sell such Retained Assets
and certain excess nitrogen credits for a period of two years ending March&nbsp;20, 2010 at which
time any remaining Retained Assets or nitrogen credits would be conveyed to DuPont for no
consideration.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of June&nbsp;28, 2009, the Company had $1,350,000 of assets held for sale related to the
Retained Assets and the carrying value of the nitrogen credits was zero. During the first
quarter of fiscal year 2010, the Company entered into a contract to sell some of these
Retained Assets for $1,250,000 and as a result recorded a $100,000 impairment charge. The
remainder of the Retained Assets were not sold during the two year period ending March&nbsp;20,
2010 and were conveyed to DuPont for no consideration on March&nbsp;20, 2010.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Separately, in an unrelated transaction, the Company sold the excess nitrogen credits for
$1,400,000 in the third quarter of fiscal year 2010. The Company recognized a gain on the
sale equal to $1,400,000 which was recorded in the <I>Other operating (income)&nbsp;expense, net </I>line
item of its Consolidated Statement of Operations.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The goal and philosophy of the Company is, and has been in the past, to provide the public
with effective, materially accurate and consistent financial reporting and disclosures. The Company
acknowledges that it is responsible for the adequacy and accuracy of the disclosures included in
the filing and acknowledges that the staff comments or changes to disclosures in response to staff
comments do not foreclose the Commission from taking any action with respect to the filing. The
Company also acknowledges that it may not assert staff comments as a defense in any proceeding
initiated by the Commission or any person under the federal securities laws of the United States.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Questions or requests for additional information may be directed to me at (336)&nbsp;316-5545. Thank
you for your attention to this matter.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ RONALD L. SMITH
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Ronald L. Smith&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Unifi, Inc.<BR>
Vice President and Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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