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Momenta Files Bankruptcy

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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8 Responses to Momenta Files Bankruptcy

  1. Claire December 15, 2010 at 3:08 am #

    This is a shame – I thought this company was huge. I have a lot of their products and loved them for the quality.

    • Nancy Nally December 15, 2010 at 9:27 am #

      Note that Momenta is not shutting down. They are using Chapter 11 to ask the court to help them reorganize their debts and liabilities so they can continue operating in a healthier manner.

  2. stumpedagain December 15, 2010 at 8:13 am #

    As a US supplier, we were turned down by Momenta because we were not cheap enough. Phew!

  3. Lyneen December 15, 2010 at 8:28 am #

    Sad to hear the news of another company in the industry.

  4. Cynthia December 15, 2010 at 9:35 am #

    This is a sad reality of doing business with Walmart. We know of many business which have had to send their manufacturing to China in order to keep Walmart contracts. People need to wake up and realize that buying “cheap” costs all of us in the long run.

  5. Nancy Nally December 15, 2010 at 2:09 pm #

    Commenters should remember that their IP addresses and any registered domain name attached to that IP are attached to their comments in the website’s back end for the moderators to view. Anonymous comments are not allowed under Scrapbook Update’s comment policy and violators of that policy may be banned.

    If the “anonymous” commenter whose comment was removed from this article would like to contact Scrapbook Update with a statement on behalf of the company that owns the domain name their IP address traced to, it would be welcome.

    The content in the article above reflects the basic facts as stated in court filings that are made under oath by the company’s officers and attorneys. Even the explanations in the article for the company’s situation are from the company’s own statements in court filings.

  6. Brenda Jones December 15, 2010 at 2:49 pm #

    Wow. A sad situation, indeed.
    Is my memory failing me, or do I truly remember a time years ago when Walmart boasted of selling “Made in the USA” products only or predominately. Maybe the memory is just from a long ago dream.

  7. Sunshine Coast Builders March 14, 2011 at 7:28 am #

    As an avid scrapbooker I’m curious to know if this company is recovering. Sounds like Walmart was a large proportion of their business which is not a sound business model to have too many eggs in one basket…an expensive lesson to learn.

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