Creative Memories Announces Agreement to Restructure Debt Files Pre-Packaged Plan of Reorganization

ST. CLOUD, Minn., Nov. 13 /PRNewswire/ -- The Antioch Company, parent company of Creative Memories, a leader in the memory celebration industry for more than 20 years, announced today that it has reached an agreement with its lenders to restructure its debt.

To facilitate this agreement, The Antioch Company and six of its subsidiaries today filed voluntary petitions for Chapter 11 protection with the U.S. Bankruptcy Court for the Southern District of Ohio. The Antioch Company has elected to seek bankruptcy protection in order to restructure its debt while continuing to maintain normal business operations without interruption. The debt restructuring is embodied in the prepackaged plan of reorganization also filed today. Under the plan, which has the full support of the Company's lenders, the process is expected to be completed by the end of this calendar year.

"After completing a comprehensive strategic review of the business, The Antioch Company, with the guidance of industry experts and turnaround specialists, determined that a pre-packaged filing was in the best interest of the future of Creative Memories," said Asha Morgan Moran, global president of Creative Memories. "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."

"The financial restructuring of The Antioch Company will allow Creative Memories to pursue its mission of preserving the past, enriching the present, and inspiring hope for the future," added Creative Memories Co-Founder Rhonda Anderson. "We are focused on our bright future as we further expand our offerings into digital scrapbooking and other innovative memory celebration options while continuing to serve our traditional scrapbook market."

The company does not anticipate any reduction in employee headcount or changes in operating facility locations and the company anticipates continuing day-to-day operations. In addition, The Antioch Company announced that it has filed a motion for authority to enter into a credit agreement with its lending group, which will provide up to $4 million in additional liquidity for restructuring and future investments.

About Creative Memories

As a leader in the memory celebration industry for more than 21 years, Creative Memories specializes in selling premium-quality, photo-safe albums, scrapbooking materials, digital photo books, and photo organization software. Based in St. Cloud, Minn., Creative Memories markets its products at in-home get-togethers through more than 55,000 independent global sales consultants in eight countries around the world. More information about Creative Memories and its products, services and career opportunities can be found at www.creativememories.com .

    Media Contact:
    Rebecca Horgen
    320-529-5772

Some of the statements in this press release include statements about our future expectations. Statements that are not historical facts are "forward- looking statements." Such statements may include projections of financial and operational results and goals, including revenue, EBITDA, Adjusted EBITDA, profitability, savings and cash. In some cases, you can identify these so- called "forward-looking statements" by our use of words such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "project," "intend" or "potential" or the negative of those words and other comparable words. These forward-looking statements are subject to known as well as unknown risks and uncertainties that may cause actual results to differ materially from our expectations. Our expectations are based on various factors and assumptions and reflect only our predictions. Factors that could cause actual results to differ materially from the forward-looking statement include technological, regulatory, public policy or other developments in our industry, availability and adequacy of capital resources, current and future economic conditions, the existence of strategic alliances, our ability to generate cash, our ability to implement process and network improvements, our ability to attract and retain customers, our ability to migrate traffic to appropriate platforms and changes in the competitive climate in which we operate. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.

SOURCE Creative Memories



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