OpTree

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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The Parent company of Creative Memories, The Antioch Company has officially sold the Antioch Publishing Company to an Indiana-based business, Trends International LLC, last week. The Creative Memories brand will branch off into its own company. The Publishing side of the Company only comprised about 5% of the total company business.

While Trends International is located in Indianapolis, the company said it will maintain the employees and operations facility in Yellow Springs, according to company president Lee Morgan.

In the early 90’s Creative Memories, the company’s photo album business saw a huge rise in sales and expanded at a fast rate. As of this past year, the Creative Memories division comprised nearly all of the company’s business. focus on Creative Memories’ most rapidly growing business, custom framing and digital scrap-booking. The company currently employs 850 people in the U.S. and eight other countries and reports annual revenues of $250 million.

The Antioch Company was started in 1926 by Ernest Morgan who’s son, Lee, runs the company today. Creative Memories is a direct sales company that uses representatives to sell their products. This differs greatly from the retail sales method used by the publishing division. Morgan hopes that this sale will enable the company to focus solely on the direct sales portion of the company, Creative Memories and continue to build and grow the company.

The sale will have no effect on current distributors and the company’s headquarters will not be moved.

We recently profiled a story on scrapbooking and how the sector continues to grow.  The company’s decision to just focus on this area is something we imagine was well thought out.  With a growing number of direct selling companies now involved in the space (Close to My Heart, Topline Creations, Scrapinasnap, and others) , it is getting more and more crowded to companies like Creative Memories are facing increased competition.  

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