Creative Memories parent company, The Antioch Company, has just announced that they have come to an agreement with its lenders to restructure its debt. Antioch and six of its subsidiaries filed for Chapter 11 bankruptcy protection. The company felt this was the best way to expedite the restructuring process, and also allowed the company to maintain its normal business operations without any interruption.
There was no specific word from the company on exactly why they had to file for chapter 11, though I’m sure the economy along with the advancement of online and digital scrapbooking products has impacted the company. Creative Memories says that they do not expect to have to lay off any employees or change its operating locations. The company will use the restructuring time to refocus on the business as well as expand product offering to meet the growing digital demands of the public.
After receiving advice from turnaround specialists, Antioch agreed to a prepackaged plan of reorganization that includes the debt restructuring. Company leaders say they expect the process to be completed by the end of this calendar year.
Asha Morgan Moran, global president of Creative Memories feels strongly that the restructuring plan will make the company better and stronger, “We are confident that the restructuring will provide strong opportunities for the company’s consultants, employees, and customers. This process demonstrates our commitment to the future of Creative Memories,” Morgan Moran said. “We will ensure that product development remains a top priority so that the company and our 55,000-plus global sales consultants will continue to benefit from our respected position in the traditional scrapbooking industry. At the same time, new product development will assist us in expanding our role into the digital market.”
Creative Memories is an active member of the Direct Selling Association (DSA).
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