North Texas-Based Envelope Company Files Chapter 11
FRISCO (CBSDFW.COM) - A North Texas-based envelope company has filed for Chapter 11 bankruptcy.
Headquarters for the National Envelope Corporation are located in Frisco. Officials say the company has been hit hard by the popularity of e-mail.
Today Kim Lehere, the director of marketing, confirmed that National Envelope filed for it's second bankruptcy in three years. "We've been forced to downsize here-and-there and it's been unfortunate but we're now looking for a buyer that's looking to operate the business, so we filed a Chapter 11 this morning as part of that process."
The company is the largest privately held manufacturer of envelopes in North America, producing some 37 billion envelopes a year. Lehere explained some of the varied reasons why National Envelope is looking to sell. "A lot of what we're seeing is really brought on by challenges that we've had over the past couple of years," she said. "We're seeing things like declining mail volume [and] competitive price pressures. Prices have been going down in this industry instead of up… and just an overall sluggish economy."
In all, the Frisco-based company has 1,600 employees, with about 20-percent of those in Texas. "We have about 150 in Frisco and our Ennis facility has around 200," Lehere said.
With the court filing, National Envelope is hoping to secure approval for $67.5 million in bankruptcy financing.
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