Creative Memories chapter 11

[scrappingmelissa]

Did you all hear?

http://www.bizjournals.com/twincitie...0/daily39.html

I am not sure if they will go out or the are just restructuring for the better?


melissa

[Cathy H]

Wow - this is big news. 11 is for restructuring so I assume they will be around for awhile - will be hard to get new demo's to sign up, I would imagine. . . TFS

[craftdoc]

Here is a link to more info that was in another post. Apparently sales are down about 40% and there were some stock issues as well.
http://www.scrapbookupdate.com/scrap...ankruptcy.html

[craftdoc]

this is interesting (a later post from the above link)

"
Creative Memories is working hard to present the Chapter 11 filing to its consultants as being part of a simple refinancing of the debt of an otherwise profitable company. A copy of the message reportedly sent to consultants that was posted on the Two Peas message board describes Creative Memories as a "profitable business" that is "constrained by the debt of our parent company". The company goes on to say that "The object is to position ourselves for growth."
However, news reports, court filings and former employees seem to tell a different story of the company's state.
In court filings, the company reported sales have decreased dramatically in the past several years, and that their assets outweighed their liabilities, making them insolvent. "

[ked]

Yikes, I think I better stock up on my paper trimmer blades, just in case...

[phunkymama]

This is another one of the parent company's subsidiaries. I see this stuff all over the place, I wonder why they're doing so poorly:
http://www.trendsinternational.com/

[Cathy H]

I think it's just a sign of the times. . .
There's tons of competition and hobby (discretionary) money is drying up. .

[dianerh]

I think it's too bad, but I also have to wonder if it has taken CM a little too long to "branch out." I went to my CM consultant's house Fri. nite to purchase some of the "old" (not true) 12 inch things that will be discontinued, and I was amazed at some of the newer papers! Very "un" CM, IMHO. I liked them well enough to buy, though!

[stampingout]

Not to step on anyone's toes, but I think that CM is stagnant. I think they have waited too long to spruce up their product line. I know 2 people who used to be CM consultants who have quit because they say they can not compete with all of the new trendy stuff that is out. In recent years CM has certainly revamped their product line, but too little too late IMHO. I still think their albums are fab!

[Melissa Hannant]

Quote:

Originally Posted by stampingout

Not to step on anyone's toes, but I think that CM is stagnant. I think they have waited too long to spruce up their product line. I know 2 people who used to be CM consultants who have quit because they say they can not compete with all of the new trendy stuff that is out. In recent years CM has certainly revamped their product line, but too little too late IMHO. I still think their albums are fab!

I agree. I posted on the other side last week in a similar thread. They are so out of date. Flat stickers are so 1980's and their papers are well.....pretty ugly in my opinion. Open up a Creating Keepsakes, Scrapbooks, Etc and check out the awesome trends. CM can't even touch what's going on right now.

[OakvilleMom]

Creative Memories is not in debt-their parent company is. Antioch has several subsiduaries.This is a restructuring move and Creative Memories will come out stronger and more diversified for it. It is business as usual for Creative Memories-and building a better business.

There have been a lot of other large companies go thru Section 11 in the past that have ended up for the better because of it.

[OakvilleMom]

As a side note, for those of you who haven't seen the New CM (as in the past 1-2 years) you might find yourself surprised. Direct sales is about building relationships with customers, and there is still a huge need for that-IMHO.

[willsygirl]

I was at a CM all day crop this Saturday and just couldnt spend my money - I know - gasp horror!!!

I have all the punches I need (I love CM punches but they need to come out with more new ones more frequently!!!), I find the papers are just old - even the new ones still have the same-ish style of prints and still have all those borders (just not me) and I even bought some of the solid color packs a while back and was disappointed that they werent direct color matches to the patterned paper packs...the stickers I get as freebies I give to my 5 year olds as they are not me at all...I just couldnt find anything to buy...and with my cricut I dont need all those letter stickers...

I think they are just not competing with what is around and their product lines, even the 'new' ones, are not up with the times...which is a shame...I love my consultant and have such fun on our cropping days...I hope they dont go away...come on CM - make me want to spend my money with you

[ldsk34]

Please understand the Chapter 11 is with the Antioch Company. Antioch is a SISTER company of Creative Memories. Antioch Company is the Manufacturer of the Album, pages and page protectors. I do believe this is a definite "restructure" for CM. CM has gone through a lot of changes in the past 3 years so hopefully this is a good thing.

Lets support the CM consultants and make this a smooth transition for all of them. If you have been scrapbooking/paper crafting for 5 years or more you probably will find something CM in your stash. I do believe CM is the founding fathers of Scrapbooking!!! Lets show some SCS love!!

[meluvstampin]

I have the current CM book here as my lead at work just sined up to be a demo with it. I cannot find anything in there that I really want.