The parent company of Creative Memories, Antioch, has filed for Chapter 11 bankruptcy protection for the second time in less than five years.
In addition, they’ve laid off at least 70 of their 230 employees.
The first bankruptcy filing, in 2008, allowed CM to restructure and close out the filing a year later. There are, however, several lawsuits pending from that filing over the loss of retirement plans by former employees.
The Minneapolis/St. Paul Business Journal reports the company has between $10 and $50 million in debt, and up to 25,000 creditors (including, now, the 20,000 CM Consultants).
The future of the company is anyone’s guess, but one former employee has told the St. Cloud Times the product line is being cut from 350 items to just 50.
In addition, a Worker Adjustment and Retraining Notification (WARN) letter sent to the Minnesota Department of Employment and Economic Development says the company plans to lay off at least 90 additional employees in June.
We’ll continue to keep you informed as events develop.