By: Jim Rosenberg Web Press Corp. in Kent, Wash., filed for protection in U.S. Bankruptcy Court for the Western District of Washington last week. The decision to reorganize under Chapter 11 of the U.S. Bankruptcy Code was taken following a special board meting in late May.
Founded 42 years ago as Web Press Aid, Web Press Corp. initially rebuilt and repaired web-fed printing equipment but soon designed its own press, which it began making in 1972. The company is known for its compact four-color Quad-Stack, used by small to mid-sized newspapers and commercial printers. A small portion of its business is still in used equipment.
The petition estimates assets between $1 million and $10 million and liabilities in the same range.
The company's 20 largest unsecured claims amount to more than $1.5 million. Among creditors holding those largest unsecured claims is pressroom ancillary equipment manufacturer Jardis Industries, Itasca, Ill. Others creditors familiar to newspapers include Essex Products Group, DYC Supply Co. and Motterstitch Co.
"They've been a great company," said Emmerich Newspapers CEO and President J. Wyatt Emmerich, who added that he was sorry to hear about WPC's difficulties after it notified him it was reorganizing. The Greenwood Commonwealth, one of Emmerich's four Mississippi dailies, runs WPC's Quad-Stack for four-color printing with its older King Press units.
Identified as executive vice president and member of the board of directors on the bankruptcy petition, Bernie Molinksi was appointed president of WPC last month. A regional sales executive since September 2007, Molinski was named marketing director earlier this year.
The OTC Bulletin Board shows WPC stock recently reached a 52-week low of 0.10 per share. The 52-week high was 0.31. The company saw a loss of $318,000 on sales of $9.8 million in the last 12 months, according to Thomson Reuters.
Comments
No comments on this item Please log in to comment by clicking here