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Archiver’s Files Chapter 11 Bankruptcy

Major scrapbook retail chain Archiver’s filed for Chapter 11 bankruptcy Monday in U.S. Bankruptcy Court in Minnesota.

The Archiver’s board authorized the bankruptcy filing on April 25th via a written directive. In court filings, the retailer indicates that it intends to continue operating. The initial petition estimates the company has between $10-$50 million in assets, and $1-$10 million in liabilities, and indicates that the company believes there will be at least some funds available for distribution to unsecured creditors.

As a retailer, it’s not surprising that a large portion of the company’s top 20 unsecured creditors are product wholesalers. The largest unsecured creditor is EK Success, who is owed over $250,000. Also appearing on the top 20 creditors list are American Crafts, 3L, We R Memory Keepers, My Mind’s Eye, Bazzill, Love To Scrap, Doodlebug, BoBunny, Ranger, Silhouette, Pioneer, Pink Paislee, Ellison, and Queen & Company, who are owed between $55,000 and $200,000 each. The Archiver’s bankruptcy is a double hit for 3L, who was already listed as one of the top creditors in the Creative Memories bankruptcy a few weeks ago.

A meeting of creditors is scheduled for May 30th at the US Courthouse in Minneapolis. Proof of claims from creditors are due to the court by August 28th, an important deadline since the petition estimates that there will be funds to disperse to the creditors who submit claims. Continue Reading →

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Creative Memories Parent Company Antioch Files Chapter 11 Bankruptcy Again

Creative Memories parent company The Antioch Company filed for voluntary Chapter 11 bankruptcy protection yesterday (April 16th) for the second time in less than 5 years. Petitions are also pending for the company’s six subsidiaries and affiliates. The cases are being handled jointly by the court.

The company had previously filed Chapter 11 bankruptcy in November 2008. That bankruptcy case was closed in early 2009, but a lawsuit brought by former employee shareholders who lost their retirement in the bankruptcy is still pending against various company executives.

According to the bankruptcy filing, The Antioch Company has in the range of $10 million to $50 million in debt, and in that same range of assets. The company claims to have somewhere between 10,000 and 25,000 creditors – a huge number (even for a corporate bankruptcy) that is obviously swelled by Creative Memories’ large network of consultants. The company has more than 20,000 consultants worldwide, and any consultant still owed a payment on the date of the bankruptcy filing is now a creditor of the company.

Among the top 30 unsecured creditors of the company, some names are familiar to those in the scrapbook industry. Adhesive manufacturer 3L is owed $350,000. Nancy O’Dell, through her company Nancy O’Dell Enterprises, is also owed over $260,000, presumably for the work she did on her signature line for Creative Memories. As in the previous bankruptcy, the majority of the company’s top 30 unsecured creditors are listed as “benefit plan participants”, meaning they are former employee shareholders who are owed buy-outs of their shares after leaving the company or being laid off.

As part of their bankruptcy filing, The Antioch Company also filed several “first day” motions requesting orders they need from the court to continue operating while in bankruptcy. Most of the orders are fairly routine, requesting access to bank accounts and other assets and the right to continue paying payroll. Two motions stand out, however. Continue Reading →

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