<SEC-DOCUMENT>0000950123-11-028232.txt : 20110613
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ACCESSION NUMBER:		0000950123-11-028232
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20110323

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
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<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">March&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>

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<TR valign="top">
    <TD nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RE:</TD>
    <TD>&nbsp;</TD>
    <TD>Unifi, Inc. Form&nbsp;10-K for the fiscal year ended June&nbsp;27, 2010<br>
File Date: September&nbsp;10, 2010<br>
File No.&nbsp;001-10542</TD>
</TR>
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</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&nbsp;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 March&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>2. Investments in Unconsolidated Affiliates, page 73</B></U>
</DIV>


<DIV style="margin-top: 6pt">
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<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 note your response to comment 2 in our letter dated February&nbsp;9,
2011 and your intent to file the audited financial statements of PAL
on or before April&nbsp;1, 2011. We assume from your response that you
intend to provide PAL&#146;s financial statements for the three year period
ended January&nbsp;1, 2011. However, based on Rule&nbsp;3-</I><I>09(b)</I><I> of Regulation
S-X, your </I><I>Form 10-K</I><I> for the fiscal year ended June&nbsp;27, 2010 should
have included PAL&#146;s financial statements for the three year period
ended January&nbsp;2, 2010. As such, your current filing is not timely.
Please amend accordingly.</I></TD>
</TR>

</TABLE>
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">The Company respectfully disagrees with the staff&#146;s comment that the 2010 Form 10-K is not
timely because it believes that Rule&nbsp;3-09 of Regulation&nbsp;S-X only requires separate
financial statements of Parkdale America, LLC (&#147;PAL&#148;) for the three year period ended
January&nbsp;1, 2011, which as permitted by Rule&nbsp;3-09(b) may be filed via an amendment to the
2010 Form 10-K. Rule&nbsp;3-09(b) requires separate financial statements to be filed as of the
same dates and for the same periods as the Company&#146;s audited consolidated financial
statements required by Rule&nbsp;3-01 and Rule&nbsp;3-02. The Company has a fiscal year end which
ends annually on the last Sunday of June. PAL&#146;s fiscal year ends on the nearest Saturday
to December&nbsp;31st. The PAL fiscal year that corresponds to the Company&#146;s fiscal year ended
June&nbsp;27, 2010 is PAL&#146;s 2010 fiscal year, which ended January&nbsp;1, 2011. Because PAL&#146;s
corresponding fiscal year ends after the date of the Company&#146;s Form 10-K filing, as
permitted by Rules&nbsp;3-09(b)(2) and 3-09(b)(4)(iii) and in accordance with the guidance in
the staff&#146;s comment letter dated November&nbsp;9, 2004, the Company will file PAL&#146;s financial
statements by filing an amendment to its Form 10-K within 90&nbsp;days of PAL&#146;s year end. The
Company anticipates that it will file such amendment by April&nbsp;1, 2011, which amendment, as
permitted by Rule&nbsp;3-09(b), will contain audited financial statements for PAL&#146;s 2008 and
2010 fiscal years when PAL met the significance test, and unaudited financial statements
for PAL&#146;s 2009 fiscal year when PAL did not meet the significance test. The Company notes
that if it were to have included in the 2010 Form 10-K PAL&#146;s financial statements for the
three year period ended January&nbsp;2, 2010 as requested by the staff, such filing would have
resulted in presenting PAL financial information for periods that do not correspond with
the Company&#146;s financial information presented as required by Rule&nbsp;3-09(b).
</DIV>

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

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<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 your historical practice of filing an amendment to your Form
10-K every other year to provide the Rule&nbsp;3-09 financial statements of
PAL. Please provide us with your rationale for providing the Rule&nbsp;3-09
financial statements every other year rather than providing the Rule
3-09 financial statements each year.</I></TD>
</TR>

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</DIV>

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


<DIV style="margin-top: 6pt">
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<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 Company&#146;s position based on its analysis of Rule&nbsp;3-09 was to evaluate whether the first
condition as of the end of the most recently completed fiscal year or the third condition for
the most recently completed fiscal year, as set forth in Rule&nbsp;1-02(w), substituting 20
percent for 10&nbsp;percent, is met with respect to PAL. In fiscal years in which the
significance test was met, the Company filed the Rule&nbsp;3-09 financial statements, as an
amendment to Form 10-K within 90&nbsp;days of PAL&#146;s corresponding fiscal year end. In fiscal
years in which the significance test was not met, no such financial statements were provided.
By way of example, since the significance test was met for the Company&#146;s fiscal year ended
June&nbsp;29, 2008, PAL was deemed significant for the 2008 fiscal year and the Company filed the
corresponding financial statements for PAL&#146;s three years ended January&nbsp;3, 2009 by amendment
to the Company&#146;s Form 10-K for the fiscal year ended June&nbsp;29, 2008. The significance tests
were not met for the Company&#146;s fiscal year ended June&nbsp;28, 2009 and they were not met for the
Company&#146;s fiscal year ended June&nbsp;24, 2007. Therefore, based on the Company&#146;s analysis of
Rule&nbsp;3-09, the Company did not file PAL&#146;s financial statements for PAL&#146;s corresponding three
years ended January&nbsp;2, 2010 or December&nbsp;29, 2007, respectively. However, the Company is
currently aware of the staff&#146;s view (as set forth in Section&nbsp;2405.3 of the Financial
Reporting Manual and the notes thereto) that such separate financial statements should be
filed if the significance tests required by Rule&nbsp;3-09(a) are met for any year presented in
the Company&#146;s Form 10-K. In future filings the Company will include such separate financial
statements for corresponding PAL fiscal years if the Rule&nbsp;3-09(a) significance tests are met
for any of the fiscal years presented in the Company&#146;s filing. Such separate financial
statements will be for the three years ended with the corresponding PAL fiscal year and will
be audited for any fiscal years presented, in which the significance tests are met. Such
statements will be filed by amendment to the Company&#146;s 10-K within 90&nbsp;days of PAL&#146;s
corresponding fiscal year end.</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>


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    <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>
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