Holsted Marketing Files Chapter 11 Case
NEW YORK, Aug. 28, 2012 /PRNewswire/ -- Holsted Marketing, Inc., a New York-based multichannel direct-marketing company, and its subsidiaries (collectively, "the Company"), announced today that they have filed a Chapter 11 case in the United States Bankruptcy Court for the Southern District of New York. The company intends to reorganize its operations in an effort to position itself for the opportunity of renewed growth and profitability in the near future.
"A filing of this nature is always regrettable," said Victor Benson, Holsted Marketing president and chief executive officer. "Holsted has been in business for more than 40 years and we have weathered numerous economic downturns to emerge as an industry leader and supplier of fashion jewelry and accessories to millions of customers, while creating incremental revenue opportunities for companies that have been our marketing partners."
"In response to the current downturn," Benson noted, "we've reduced our overhead position by more than 27%; we have restructured our order-processing capabilities to further reduce operating expense; we have launched a direct-to-consumer marketing effort; and have refined our marketing strategies to increase our revenue base and revenue-per-customer contact."
"But after careful consideration of our debt position, near-term cash flow needs, and the stubbornly sluggish economy, we've realized this filing process is necessary to best position Holsted for an economic recovery," Benson added. "Holsted has undergone a major transformation in the past two years, but needs additional time and flexibility to undertake the remaining initiatives to move the company forward and emerge as a more competitive and sustainable enterprise. Holsted will continue normal operations throughout this process, subject to court approval; our line of credit will be intact, which we believe is providing sufficient liquidity to assure that all our loyal vendors, suppliers and other business partners will be paid in full for goods and services they provide us going forward; and our valued employees will be able to continue to provide superior service to our marketing partners and customers. We believe in our business model and its viability going forward and plan to exit Chapter 11 very quickly, which will benefit Holsted and all parties involved."
Rosenthal & Rosenthal, Inc. recently named by Crain's as one of the top ten privately held businesses in New York, is acting as secured lender to Holsted Marketing. Rosenthal provides factoring, asset-based lending and specialty lending to clients in various industries.
Chapter 11 permits a company to continue normal operations while it develops a plan to reorganize. The Company's Board of Directors has determined that filing the Chapter 11 case is in the best interests of the Company, its creditors and other stakeholders. The financing will provide the Company with sufficient capital to fund operations through the Chapter 11 process.
Holsted Marketing's bankruptcy counsel is SilvermanAcampora located in Jericho, N.Y.
About Holsted Marketing
Holsted Marketing, founded in 1971 and a member of the Direct Marketing Association since 1978, is a leading multichannel direct-marketing company and has supplied fashion jewelry and accessories to millions of customers in the United States, Canada and the United Kingdom. The company's areas of specialty include advertising, direct mail, loyalty, retention, rewards and database marketing. Holsted Marketing partners with companies to bring them closer to their customers through strategic marketing programs designed to provide new, independent revenue streams. The company deploys a merchandise-based business model, marketing expertise and brand sensitivity to create customized communications to help partners expand their connection with customers and re-invigorate their brands. Its partner companies have included many of the major national retailers and catalog/mail-order companies as well as financial and service companies. The company's web address is www.holstedmarketing.com.
SOURCE Holsted Marketing