Printing Arts America Files for Court Protection, To Deliver Restructuring Plan
Press release from the issuing company
11/13/01 - (WhatTheyThink.com) - Privately held Printing Arts America (PAA) has filed for bankruptcy protection and will attempt to restructure their debt. The filing took place on October 31st. The company hopes to have a working plan to present to the court within the next few months.
Joe Ahearn of Pilgrim Advisers has been retained to orchestrate the process. Past CEO, Marion Antonini has stepped down but is still associated with the company. Ahearn said the company took on significant debt related to the financing of 11 acquisitions. With the slowing economy and tight financial markets, investors and management decided to seek protection by the court.
PAA, based in Connecticut, consists of eleven printing operations: Printing Arts Dallas/Ft. Worth, AIM Riverside Press in Pompano Beach, Florida; Bay State Press in Framingham, Massachusetts; Classic Printing in Nashville, Tennessee; Printing Arts Houston, in Houston, Texas; George Lithograph in San Francisco, California; Oaks Printing in Bethlehem, Pennsylvania; Original Impressions in Miami, Florida; Printing Arts Chicago in Illinois, S&S Graphics in Laurel, Maryland and Printing Arts Mexico in Guadalajara, Mexico.
PAA was started by C. Turney Stevens Jr., in February 1998 with the acquisition of four commercial printing companies. Stevens, Sam Bartholomew, chairman of Nashville-based law firm Stokes & Bartholomew, Nashville health care executive Clayton McWhorter, and Kohlberg & Co., a private equity merchant banker in New York were part of the original investment team.
Sales reached $200 million last year with plans to take the company public. PAA envisioned “hub and satellite” locations in a calculated effort to streamline the printing process on a national scale. The larger companies acquired by PAA serve as hubs for a broad range of services that others in small to mid-size markets use to serve customers. Sources at various PAA locations say it’s business as usual with no impact thus far on day-to-day operations.
Ahearn said there have been no significant layoffs or closures as a result of the filing. The company has just over 1,000 employees. PAA has been approved for interim financing which will help PAA develop a satisfactory plan going forward.
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