Home Industries Capital Goods Rhody Rug finalizes acquisition of former competitor Colonial Mills

Rhody Rug finalizes acquisition of former competitor Colonial Mills

By

Jacquelyn Voghel

-

09/22/2025

image_2025-09-22_153715977 — TONY LOURA, right, plant manager at braided rug manufacturer Rhody Rug Inc. in Lincoln, examines pieces of a rug while Scott Weldon, president, looks on. /PBN PHOTO/MICHAEL SALERNO

LINCOLN – After a months-long acquisition process, Rhode Island’s two rug manufacturers have converged under the ownership of Rhody Rug Inc. This week, Rhody Rug CEO Scott Weldon announced that the nearly 40-year-old company has completed its acquisition of Colonial Mills Inc., its former competitor. The newly-merged company will operate as Rhody Rug and Colonial

Already a Subscriber? Log in

To Continue Reading This Article

Become a Providence Business News subscriber and get immediate access to all of our premier content and much more.

Learn More and Become a Subscriber

Critical RI business news and analysis updated daily.
1 year of print (26 issues).
Unlimited access to all subscriber only content on our website, on any device.
Free email alerts.
Annual Book of Lists Print Edition.
All special issues produced during subscription term.

Click Here to purchase a paywall bypass link for this article

PBN Branded Content

Everyone needs science. Science needs everyone.

The Amgen Foundation is guided by the belief that all students should have the opportunity…

Learn More

No posts to display

LEAVE A REPLY Cancel reply

LINCOLN – After a months-long acquisition process, Rhode Island's two rug manufacturers have converged under the ownership of Rhody Rug Inc. This week, Rhody Rug CEO Scott Weldon announced that the nearly 40-year-old company has completed its acquisition of Colonial Mills Inc., its former competitor. The newly-merged company will operate as Rhody Rug and Colonial Mills. Terms of the acquisition were not immediately available. "For months, we’ve been working diligently on this acquisition, and we couldn’t be more excited about bringing together two companies known for quality and tradition," Weldon said in a statement. "Colonial Mills has a rich history as a U.S. manufacturer, and we are thrilled to honor that legacy while continuing to expand our capacity to deliver the finest braided rugs made right here in America," he continued. Though Rhody Rugs was founded in 1987, Weldon represents a new era for the manufacturer, having purchased the business in 2020. Not long after, Weldon hired Tony Loura, who had a 25 year career at Colonial, as the company's plant manager. The company continues to evolve with the times: In September 2023, Rhody Rug expanded to offer e-commerce and direct-to-consumer sales. Previously, the company focused on selling to factory outlets and wholesale to retailers. Last fall, Rhody Rug also contributed to a study on sustainability and local sourcing in the North American textile industry. Colonial Mills, founded in 1977, filed for Chapter 11 bankruptcy in April. As of fall 2021, Colonial employed around 100 people. Prior to Colonial's closing, Weldon estimated that Rhody Rug had around six national competitors. With the acquisition, he says the company has become the largest U.S. manufacturer of braided rugs. Rhody Rug manufacturers wool-based, nylon and polypropylene thread rugs. As of 2023, the company produced around 1,500 rugs per week. "We couldn’t be more excited to remain right here in Rhode Island, continue employing Rhode Islanders, and add even more jobs as we grow," Weldon said, and "will continue supplying the highest quality braided rugs to customers across the country." Jacquelyn Voghel is a PBN staff writer. You may reach her at Voghel@PBN.com.