Wilton Makes Chairman Permanent CEO

Wilton Brands Inc. announced today that Chairman of the Board and interim CEO Jerry Levin has been appointed as the company’s permanent CEO. Levin will also continue as the company’s Chairman.

Levin has been interim CEO since Wilton’s previous CEO, Richard Conti, resigned in October 2009 shortly after a settlement with the company’s creditors kept it out of bankruptcy court but placed it under new ownership.

Wilton is the parent of scrapbook brands EK Success, K & Company and Martha Stewart Crafts.

Mr. Levin had this to say about his new role at the company: “Since serving as Chairman and interim Chief Executive Officer I have been impressed with Wilton, and its great products, brands, and people. I am enthusiastic about the opportunities that exist at Wilton. I am looking forward to working with the Board and the Company’s employees to continue Wilton’s successes.”

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Top Scrapbook News Stories of 2009

It’s time to say goodbye to 2009…here’s a look back at the top scrapbook industry news stories of the year.

Paris Hilton Does CHA

The CHA crowd is used to having the likes of Vanna White and Martha Stewart grace the show with their presence. But the show has never quite seen a spectacle like happened at CHA-Winter 2009 in Anaheim when Paris Hilton strutted onto the show floor trailed by a posse of burly bodyguards and foreign paparazzi.

paris-arriving-webWell, now I can check “getting elbowed by German-speaking paparazzi” off my bucket list at least.

Creative Memories Files Bankruptcy

Although the bankruptcy of Creative Memories was technically filed in late 2008, the disposition of it continued into 2009. The court approved the company’s bankruptcy plan on January 9th, but former company officers still face legal action from former employee shareholders over their actions in regard to the bankruptcy plan.

CK Media’s Financial Problems

Stories stemming from the underlying thread of CK Media’s financial issues were a recurrent theme in the scrapbook news in 2009. First Digital Scrapbooking was shut down, and shortly afterward Simple Scrapbooks magazines was closed as well. Scrapbook Update broke the news in February that CK Media had called in turnaround/bankruptcy firm CRG Partners to settle its debts with its creditors under threat of a bankruptcy filing.

In early July, the sale of CK Media’s remaining publications to New Track Media became final, triggering major layoffs at the company.

CHA Craft Supershows

There was something else new at CHA-Summer 2009 besides the venue – the addition of a consumer event that operated the weekend after the trade show. Although controversial when first announced, the Craft Supershow was a massive success in Orlando, and CHA is continuing the event in conjunction with CHA-Winter 2010 in Anaheim.

IMG_6073

Big Names Depart from Creating Keepsakes

As the company foundered this year, a lot of big names departed Creating Keepsakes and its parent company to work on other projects. The departures went all the way to the top of the company, when Creating Keepsakes founding editor Lisa Bearnson announced she was giving up her role with the magazine. Other popular well-known names who departed the company included Becky Higgins, Ali Edwards, Cathy Zielske, and Jessica Sprague.

Stampin’ Up Angers Demonstrators With New IDA

In early fall, Stampin’ Up issued a revised IDA (independent demonstrator agreement) to all of its demonstrators that included new restrictions on their online activity. Stampin’ Up originally interpreted the new guidelines as meaning Stampin’ Up reps couldn’t link to anyone online who linked to anywhere else that sold or promoted non-Stampin’ Up products. Many reps threatened to resign rather than live with restrictions that would force them to remove themselves from a large portion of the online community, and Stampin’ Up was forced to loosen the guidelines.

Memory Makers Ceases Publication

In early May, Scrapbook Update broke the story that F+W Media was planning to shut down Memory Makers Magazine with the Sept/Oct issue. This news was confirmed by the publication the next day. The magazine’s remaining subscriptions were picked up by Northridge Media for digital fulfillment with an all-access pass to its titles.

Melody Ross Departs Chatterbox, Company Shelved by Ultra Pro

In early July, Chatterbox founder Melody Ross revealed that she had departed the company back in April. At CHA-Summer, a rep for Chatterbox parent company Ultra-Pro confirmed to Scrapbook Update that the Chatterbox brand’s product lines were being discontinued. Ten years ago, the company was revolutionary in the industry. Now, it no longer exists.

Lenders Attempt to Force Wilton Brands Bankruptcy

After holding company Wilton Holdings breached covenants of loans it owed, the parent company of EK Success and K&Co was called into bankruptcy court by lenders who filed a petition to force the company into bankruptcy. The issue was eventually settled out of court by the lenders and Wilton. Later in the year, Wilton’s CEO resigned, saying that the new ownership should have an opportunity to select their own management.

Gypsy Introduces New Era Of Scrapbook Electronics

Shortly before CHA-Summer, Provo Craft started executing a viral marketing campaign to raise buzz on its new electronic accessory for the Cricut called the Gypsy.

The campaign was successful at raising buzz on the Gypsy, which is a handheld device that lets users create designs from their cartridge library and then cut them via their Cricut machine. Probable future plans for the device include the ability to purchase individual cut designs from an iTunes-style store, instead of having to purchase entire cartridges.

The Gypsy debuted with an HSN package and a 30 day exclusive run at Michaels. Although the MSRP is $299, over the holidays the street price seems to be hovering around $250.

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Wilton Brands CEO Resigns

Wilton Brands, owner of EK Success and K & Company, announced Monday that their CEO is resigning effective October 31st.

Richard Conti, the departing CEO, will be replaced temporarily by company Chairman Jerry W. Levin while a search for a permanent CEO is undertaken. In a comment that is revealing about the reason for his departure, Conti said, “The Board and I both feel that Wilton’s new owners should have the opportunity to establish new CEO leadership for the Company.”

Wilton is under new ownership because of the settlement with its creditors that kept its holding company (Wilton Holdings) from being forced into bankruptcy this summer under an involuntary petition that was filed in July by several of its creditors. The petition was withdrawn as the result of an “agreement in principle” regarding the debt a short time later. The settlement was finalized this month:

As previously announced on October 12, Wilton’s parent company, Wilton Holdings Inc., and its subsidiaries consummated an agreement with their largest creditors, affiliates of TowerBrook Capital Partners L.P. and Deutsche Bank Trust Company Americas, to recapitalize Wilton Holdings. The recapitalization provides Wilton Holdings with an improved capital structure, a reduced debt burden, the ability to continue delivering great products and quality service to customers every day, and the opportunity to focus on growth over the long term. As a result of this agreement, affiliates of TowerBrook Capital Partners L.P. and Deutsche Bank Trust Company Americas are the new majority owners of Wilton Holdings.

In addition to EK Success and K & Company, Wilton Brands also is the home of the Martha Stewart Crafts line of products.

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Paperclipping Newsbreak: Lucky Episode #13

Don’t miss this week’s episode of Paperclipping Newsbreak! We talked about the new Scrap App for iPhone, Wilton Holdings & its creditors, and why you shouldn’t get your scrapbooking news from Newsweek (among other topics). Make sure you get all the news!

This week’s show is now available for listening or download on the Paperclipping Newsbreak site, or at the links below:

Download Episode 13 of Paperclipping Newsbreak (Right click and select “save as…”, then you can play the file on your computer)

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Wilton Holdings Reaches Agreement With Lenders

Wilton Brands announced today that its parent company Wilton Holdings has reached an agreement in principle with its two largest creditors regarding a restructuring of the company’s finances. The creditors, Deutsche Bank Trust Company Americas and JGF Credit, LLC,  had filed a petition in federal court last month requesting the company be placed into involuntary Chapter 11 bankruptcy after Wilton violated debt agreements with them.

According to the statement issued by Wilton Brands about the agreement:

The parties have agreed to a continued period of forbearance during which they will work to effect the financial restructuring on terms that have been mutually agreed. As part of the agreement, JGF and DB have agreed to stand still with respect to the involuntary petition filed against Wilton Holdings on July 17, 2009. Further JGF and DB have agreed that they will withdraw the involuntary bankruptcy petition at the time of the consummation of the financial restructuring of Wilton Holdings. The Company is optimistic that the restructuring will be consummated in the near term and will position Wilton Holdings as a stronger, more financially viable company.

Wilton Brands was formed in August 2007 when EK Success, already owned by GTCR, Golder Rauner, LLC., purchased Wilton Industries and Dimensions Holdings. Earlier in 2007, EK Success had launched the Martha Stewart Crafts line in stores. EK Success was founded in 1978, and purchased in 2006 by GTCR, Golder Rauner, LLC. K & Company was formed in 1996.

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