EXHIBIT 99.1

               CROWN CRAFTS, INC. SELLS ADULT BEDDING, REFINANCES

ATLANTA, JULY 26, 2001 - Crown Crafts, Inc. today announced that it has
completed the sale of its adult bedding business to an executive group headed by
former CEO Michael Bernstein. The sale included the Calvin Klein, Royal Sateen
and private label bedding and bath business which accounted for $76 million of
sales in the fiscal year ended April 1, 2001. Also included were Crown Crafts'
remaining operations at Roxboro, North Carolina and the New York office and
showroom. Proceeds of the sale were $8.5 million cash plus assumption of certain
liabilities. The loss on the sale is approximately $24 million.

The company also refinanced its existing short-term debt of approximately $75
million into a new $49 million credit facility with its existing lenders. The
new credit facility includes a three year revolving loan of $19 million, senior
notes of $14 million due in five years and subordinated notes due in six years.
In addition, the lenders received warrants exercisable for non-voting common
stock that is convertible into voting common stock. When exercised, the lenders
will own 65 percent of the Company's common stock on a fully diluted basis.

E. Randall Chestnut, newly elected Chairman, President and CEO of Crown Crafts
stated "We have successfully completed our transition to a company that designs,
markets and distributes highly competitive (primarily juvenile) products
acquired by global sourcing and selective manufacturing. The new Crown Crafts is
a focused consumer products company concentrating on infant bedding, blankets,
bibs and accessories as well as luxury hand-woven home decor. The refinancing
right-sizes and restructures the company's balance sheet to fit the cash flows
of the continuing businesses. We are thankful for the cooperation and commitment
of our lender group during this difficult transition.

The new Crown Crafts consists of seven acquisitions made since October 1995.
These acquisitions now make up the following companies: Crown Crafts Infant
Products (Red Calliope, NoJo, PillowBuddies(R)); Hamco (Hamco, Pinky Baby);
Burgundy; and Churchill Weavers.

We are particularly pleased that a very distinguished group has agreed to serve
on our board of directors, including Mr. William T. Deyo, Jr., Mr. Steven E.
Fox, Mr. Sidney Kirschner, Mr. Zenon S. Nie, Mr. William P. Payne, Dr. Donald
Ratajczak, Dr. James A. Verbrugge and chaired by myself, as the only inside
director.

The new focused Crown Crafts is well positioned in the marketplace. Hamco is the
market leader in infant bibs and Crown Crafts Infant Products has exceptional
brand awareness in its core lines of Red Calliope and NoJo, two names that
retailers and consumers recognize and seek. In addition, we hold some of the
best licenses in the infant business.



On a pro forma basis, Crown Crafts is both profitable and cash flow positive
with annual revenue of about $120 million with total assets of about $65
million."

As a result of the restructuring losses incurred in the fiscal year ended April
1, 2001, Crown Crafts expects to report a loss of over $70 million once the
audit is finished. The losses include $10 million on the sale of the Wovens
division to Mohawk in November 2000, $5 million on the sale of the Roxboro,
North Carolina plant to Vector Tobacco in June 2001, $24 million on the sale of
the adult bedding business, a write-off of $12 million on computer systems as
well as operating losses from businesses that are no longer part of the ongoing
Crown Crafts.

E. Randall Chestnut and Carl Texter will host a conference call at 11 AM eastern
time on Friday, July 27. The conference call number is 1-800-709-3816.

Statements contained in this release that are not statements of historical fact
are "forward-looking statements" within the meaning of the federal securities
law. Forward-looking statements involve unknown risks and uncertainties that may
cause future results to differ materially from what is anticipated. These risks
include, among others, general economic conditions, changing competition, the
level and pricing of future orders from the Company's customers, the Company's
dependence on third-party suppliers, including some located in foreign countries
with unstable political situations, the Company's ability to successfully
implement new information technologies, the Company's ability to integrate its
acquisitions and new licenses, and the Company's ability to implement
operational improvements in its acquired businesses.

Crown Crafts, Inc., headquartered in Atlanta, Georgia, designs, markets and
distributes infant & juvenile products and luxury hand-woven home decor. Its
subsidiaries include Hamco, Inc. in Louisiana, Crown Crafts Infant Products,
Inc. in California, Churchill Weavers in Kentucky and Burgundy Interamericana in
Mexico.

Contact: Carl Texter 770 644 6230