Creative Memories Scales Back Layoff Plans
It appears scrapbooking company Creative Memories won’t be forced to eliminate its entire 163-member work force as it had planned to do after filing Chapter 11 bankruptcy two months ago.
The company in April laid out its intentions to let go the majority of its St. Cloud headquarters employees, but it has reportedly turned the corner and hopes to move the business forward instead.
After laying off about 70 employees in April, Creative Memories outlined its plans for further cuts in an April 16 letter to Minnesota Department of Employment and Economic Development (DEED).
In the letter, the company suggested that the permanent cuts would be made throughout June and that they would occur unless “business circumstances change.”
But now, CEO Chris Veit told the St. Cloud Times, the layoffs detailed in the April notice would not occur as stated.
“That’s not happening, at least during the period we anticipated. One-hundred-and-sixty-three people—that’s what we have left,” Veit told the newspaper. “We have been and will continue to make changes, but at this time we aren’t expecting any layoffs of that magnitude. We want the business to go forward and we need people to do that.”
Creative Memories and its parent company, The Antioch Company, LLC, which manufactures, packages, and markets commercial and recreational paper products, both filed for Chapter 11 bankruptcy protection in April in an attempt to reorganize their finances while continuing business operations.
Veit said that, although the layoffs outlined in April would not occur, there is a “trigger” that could cause a reduction in the company’s work force later this summer or as the bankruptcy proceedings unfold, the St. Cloud Times reported.
“There will definitely be changes in our operation during the summer,” Veit told the newspaper. “But what those might be, I can’t say right now. We never did intend to lay off 163 people. But we were required by law to give notice that it was possible.”
Creative Memories was founded in 1987, and this is not the first time it has filed for bankruptcy. It, along with Antioch, filed for Chapter 11 in November 2008 in an attempt to restructure its debt, eventually emerging from bankruptcy in January 2009.