NEW YORK, Aug. 14, 2013 /PRNewswire/ -- Holsted Marketing, Inc. ("Holsted"), a New York-based multichannel direct-marketing company, announced today that its plan of reorganization was approved by creditors and confirmed by the U. S. Bankruptcy Court. Holsted filed its chapter 11 case on August 28, 2012.
"With the support of our lenders, our valued business partners and our employees, we've reorganized operations successfully to better position ourselves for the opportunity of renewed growth and profitability," said Victor Benson, Holsted's chairman and chief executive officer.
Holsted has secured an exit financing facility from Rosenthal & Rosenthal, Inc., its existing secured lender.
"Before entering the bankruptcy process," Benson noted, "we had reduced our overhead by more than 27% and implemented several steps to cut operating expenses and accelerate revenue generation. With the cooperation of our suppliers and creditors in general, we have significantly lowered our debt position and have now been profitable for the last eight consecutive months. We believe we have turned a corner toward more sustained revenue growth and profitability, which in turn will provide enhanced opportunity for our business partners.
"Holsted has served its clients for more than four decades, building businesses and supporting brands," Benson noted. "We look forward to working with our marketing partners to capitalize upon an improving economic environment and our enhanced operating systems. A significant step in that regard was the launch of our own best-in-class order processing company, Intelligent Solutions Direct, which currently handles 100% of the Holsted processing requirements. ISD is now positioned to engage additional clients, providing the finest in order processing capability.
"We want to express our enormous appreciation to all the parties who supported us in this challenging period, and look forward to those relationships continuing and being prosperous as we move forward," Benson concluded.
The Company's bankruptcy counsel is Silverman Acampora, LLP 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. Holsted's areas of specialty include direct mail advertising, loyalty programs, customer retention, reward programs, and database marketing.
Holsted partners with companies through strategic marketing programs designed to provide new, independent revenue streams. Holsted deploys a merchandise-based business model which utilizes marketing expertise and brand sensitivity to create customized communications that help their partners add monetary value to their customer relationships. Holsted's partner companies have included many of the major national retailers and catalog/mail-order companies as well as financial and service companies.
The company also markets direct to the consumer under its brand, Holsted Jewelers, with a website address of www.holstedjewelers.com. Holsted's corporate web address is www.holstedmarketing.com.
This news release contains forward-looking statements that are subject to risks and uncertainties. Forward looking statements include information proceeded by, followed by, or that includes the words "believes," "expects," "anticipates," "could," or similar expressions. The following important factors, among them, could affect Holsted's future results and could cause those results to differ materially from those expressed in each forward-looking statement: material adverse changes in economic conditions in the markets served by Holsted; future regulatory actions and conditions in Holsted's operating areas; and competition from others in the markets served by the business. Holsted undertakes no obligation to update the information in this news release.
SOURCE Holsted Marketing
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