118 Jobs At Stake As Minnetonka Co. Files For Ch. 11
Scicom Data Services, a Minnetonka-based data processing company, warned the state last month that it could lose all 118 of its employees as it is sold to Arden Hills-based Venture Solutions, Inc.
Scicom filed for Chapter 11 bankruptcy on August 6, the same day Venture announced it had entered into an agreement to acquire Scicom’s assets for an undisclosed sum. The sale is expected to close around September 30.
While Scicom is required to notify the state that it may lose all of its employees, the company said that it expects Venture to make offers of employment “to a substantial number” of its former employees.
Although the sale is still subject to the approval of the bankruptcy court, Venture said that, if the sale is confirmed, “Scicom will work with Venture to address the structure of the combined organization, with the primary objective of providing its clients best-in-class products, services, and technologies.”
“We do hope to hire a significant amount of the Scicom employees back after the bankruptcy, but we can’t be sure of a specific number until the process has been completed,” Mark Wilkes, a spokesman for Venture, told Twin Cities Business.
“Venture is still examining the facilities and production before we determine the exact headcount that will be staying on, but we would like to keep as many of the current Scicom team as possible,” Wilkes added.
Scicom will not retain its name after its assets are purchased by Venture Solutions, according to Wilkes.
Venture Solutions, a print and digital communications provider, is a subsidiary of North Mankato-based Taylor Corporation, one of Minnesota’s 20 largest private companies.