Momenta, Inc., formerly known as American Traditional Designs, filed for Chapter 11 bankruptcy reorganization on October 23rd. The company will continue to operate while it goes through bankruptcy reorganization.
The company’s Board of Directors voted at a special meeting on October 22nd to authorize the filing. The New Hampshire-based company states in court filings that it has $2.8 million in assets, and $4.6 million in liabilities. In 2009, Momenta had $5.75 million in sales, down from $7.5 million in 2008. According to court filings, the company’s 20 largest unsecured creditors consist mostly of Asian suppliers and shipping companies. It also owes significant debts to its warehouse services provider. In the past year, Momenta has been party to four lawsuits regarding unpaid bills. The deadline for creditors to file claims with the court is Feb. 22nd, 2011.
Momenta is one of Northwood, New Hampshire’s largest employers, with 19 employees in their offices there. The company was founded in 1979, and originally focused on brass stencil products. In recent years the company focused on the scrapbooking market, changing their name from American Traditional Designs, the name they were known for marketing stencils under, to Momenta, and marketing products under the names ATD and Complements. The changes are credited by the company with leading to a 500% sales increase over a five-year period.
Court filings blame the company’s current financial problems on a combination of factors, including the loss of a large Walmart contract and increasing warehouse costs.
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