UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
                             
FORM 8-K
                             

CURRENT REPORT

Pursuant To Section 13 OR 15(d) Of The Securities Exchange Act Of 1934


Date of Report (Date of earliest event reported): July 7, 2010

                                                                      

THE DIXIE GROUP, INC.
(Exact name of Registrant as specified in its charter)
                                                                      

 

Registrant's telephone number, including area code (423) 510-7000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01.

Other Events

On July 7, 2010, The Dixie Group, Inc. received confirmation of an interest rate swap agreement in the notional amount of $25,000,000 beginning July 11, 2010 and ending May 11, 2013 establishing a fixed rate of 1.42%.  This swap agreement is effective upon termination of the current $25,000,000 notional amount swap which was at a rate of 2.38%.

Item 9.01

Financial Statements and Exhibits

(d)

Exhibits

(10.1)

Confirmation of terms and conditions of the Transaction entered into between The Dixie Group, Inc. and Bank of America, N.A.

(10.2)

Termination of current $25,000,000 notional amount swap between The Dixie Group, Inc. and Bank of America, N. A.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.