Vertis Holdings Inc. files for bankruptcy
GREENVLLE — The Vertis facility in Greenville is not expected to be affected by a Chapter 11 bankruptcy filed by the company for the third time since 2008.
Vertis Holdings Inc. is a premier provider of targeted advertising and marketing solutions to leading retail consumer services companies, according to its website.
According to Bloomberg.com, the company filed for bankruptcy, stating it plans to sell to Quad/Graphics Inc., in part of a court-supervised auction.
Quad/Graphics, based in Sussex, Wisc., is a leading global provider for print and multichannel solutions for consumer magazines, special-interest publications, catalogs, retail inserts/circulars, direct mail and more, according to its website.
“We fully expect to operate our business as usual while we work to complete our Chapter 11 process and close the anticipated sale to Quad/Graphics,” said Vertis Chief Executive Officer Gerald Sokol Jr.
Sokol said approval was received on Oct. 12 “for a series of first day motions,” which allows the company to compete effectively in all areas. This includes the Greenville facility located at 1101 Industrial Park Drive.
“(We will) deliver on the commitments we made to our clients, pay employees for all the great work they do and maintain our relationships with suppliers,” Sokol said. “This is a great outcome for Vertis and for all of those who depend on our businesses as we remain an independent company and work toward the completes of the sale.”
Sokol said this time of year is the company’s biggest year and clients expectations are high.
“We expect to maintain our current workforce throughout the Chapter 11 and sales process,” he said when asked if jobs will be lost at the Greenville facility. “We will need all of our employees to continue to give their very best, and we know we can count on our Greenville team to deliver.”
Quad/Graphics will make an announcement with plans for integration following the completion of the sale. Vertis is expecting the majority of its plants will continue to operate with their current teams intact.
Kelli Ameling
A Daily News staff writer, Kelli covers the Greenville area and the topics of health and technology.Kelli Ameling has written 561 articles.
Technically, Mr. Sokol is speaking half-truths. They will keep the facility open throughout the Chapter 11 and the subsequent Court-supervised auction process under Section 363 of the Bankruptcy Code. This process will most likely close in the first quarter of 2013. Quad is the odds on favorite with their stalking horse bid of $258.5 million (Quad has the advantage having completed due diligence, though others could raise the stakes). What Mr. Sokol fails to mention (and knows all-to-well) is that the market for Insert printing is highly saturated and that Quad is acquiring Vertis to remove capacity from the market. Quad will most likely shutter most Vertis facilities and move production to their own. The only way (to quote Sokol) “This is a great outcome for Vertis and for all of those who depend on our businesses as we remain an independent company and work toward the completes of the sale.” is exactly that… complete the sale with no concern for the well-being of the employees after close. Just remember this quote “We expect to maintain our current workforce throughout the Chapter 11 and sales process,” he said when asked if jobs will be lost at the Greenville facility. “We will need all of our employees to continue to give their very best, and we know we can count on our Greenville team to deliver.”
This is Mr. Sokol’s mantra and the final destruction of Vertis, his legacy.