NCE Seeks Chapter 11 Protection
Milford, OH — New Creative Enterprises (NCE), a leading designer and manufacturer of outdoor living décor and gift items, decided to seek Chapter 11 bankruptcy protection in an effort to maximize value for its creditors and restructure the company or find a financial partner, according to Benno Duenkelsbuehler, president and CEO since the end of 2006.
The current global banking/credit crisis, coupled with a significant sales drop before new regional sales agencies were recently appointed, were the main reasons behind the company’s decision. The company has multi-million dollar lease obligations originating from a warehouse lease buy-back that was negotiated in 2001. Satisfying those obligations, which the private equity owners had secured through a credit facility, became unaffordable in the current environment. “While this certainly throws another little challenge our way, I am very proud of my team for executing an otherwise flawless turnaround in the last 24 months,” said Duenkelsbuehler. “We did not see this credit crisis coming, but with a team of A+ players, and a terrific group of sales agencies who delivered an 18% sales increase over last year in bookings volume so far this month, we are confident we will overcome this last hurdle.”
NCE has instituted an immediate cutback in its workforce that will not affect its customer fulfillment operations. According to Duenkelsbuehler, the firm is planning to participate at the Winter markets and will focus on fulfilling all customer orders from its strong inventory position going into 2009.
“Our decision to seek bankruptcy protection was difficult, but it is ultimately the best decision for our creditors, factory partners, employees, sales agencies, and our customers,” says Duenkelsbuehler. The company reports having received many inquiries from investors intrigued by NCE’s well-recognized brand equity and the rare investment opportunity it presents.
For additional information about New Creative Enterprises, contact the company at 800-435-1000 or visit the firm’s web site at ncegifts.com.
About New Creative Enterprises
New Creative Enterprises (NCE) is a leading U.S. designer and distributor of outdoor living décor that offers value and design innovation to its retail customers. NCE’s product lines – everyday garden décor, decorative flags and hardware, seasonal garden décor and collegiate items – are consistently ranked among the top-selling outdoor décor lines in both independent retail channels and national retail brands. Matched with its unrivaled retail support and excellent customer service, NCE offers industry-leading merchandising support with its effective retail fixtures and display solutions to increase product sell-through. The company’s best-selling categories include bird-related, flags, statuary, chimes, stepping-stones, furniture, design posts and lighting, offered in complete outdoor living collections or as category groupings.
