Fuller Brush Company Files Chapter 11 Bankruptcy Protection
Iconic Company Begins New Chapter By Restructuring For Future Growth
GREAT BEND, Kan., Feb. 22, 2012 /PRNewswire/ -- The Fuller Brush Company announced today that it has filed protection from its creditors under Chapter 11 of the U.S. Bankruptcy code in the U.S. Bankruptcy Court for the Southern District of New York, Case No. 12-10714.
According to Chief Restructuring Officer, Lawrence Perkins, the filing was a necessary means to effectuate a reorganization of the Company in an effort to return the Company to profitability and restructure its balance sheet. The Company has negotiated a new line of credit that provides immediate and ample funds for working capital while undergoing the reorganization. The Company is lowering its operating costs, while seeking to broaden its existing revenue streams.
"After careful consideration of Chapter 11 at this time the board of directors and senior management team believe this is a necessary step and the right thing to do for the future success of the Company," stated CRO Lawrence Perkins.
Fuller has 180 employees, the majority of which work from its headquarters in Great Bend. The filing listed assets of between $10 million and $50 million, debts of between $10 million and $50 million. Perkins further assured employees that it will be business as usual under Chapter 11. "Fuller Brush expects to pay employees wages and benefits and provide even greater levels of service to its customers," the Company said.
Perkins said the Company has multiple objectives while in Chapter 11, amongst them is maximizing the revenue streams from the Company's most popular products, while eliminating the production of other, less profitable items, obtaining the financing to reassure its employee, customers, and stakeholders that the Company is in business ; lowering operating costs to levels that will allow the Company to be more competitive in its markets, and driving growth through new market channels and focusing on its most valuable business/product lines.
Currently, the Fuller Brush Company sells branded and private label products for personal care, commercial and household cleaning and produces more than 2,000 items including household cleaning aids, commercial and industrial cleaners, personal care products, lotions and health care aids. The Company's business is comprised of several different businesses/distribution channels including: direct selling, commercial, custom products, factory outlet stores and retail (including catalog, internet, and retail stores. Some of Fuller's retail partners include; Home Trends, Bi-Mart, Byerly's, Lunds, Home Depot, Do-It-Best, Primetime Solutions, Vermont Country Store and Starcrest . The Company will continue to actively developing channel of distribution through retail opportunities during the reorganization.
Over the last six months, the Fuller Brush Company has re-launched the Brand and Products into Mass Market through retail stores and E-Commerce/Consumer web portal. Additionally, they've invested in talent, systems, new product development and marketing to bring the brand forward to today's target market of 27 – 45 year old women (core purchaser for cleaning products).
About The Fuller Brush Company
Since 1906, generations have trusted the iconic The Fuller Brush Company to deliver hard-working cleaning remedies. Today, Fuller's expanded distribution includes direct, online and retail channels offering its perfected formulations and designs to a new generation. The Fuller Brush line of cleaning remedies are the most effective and efficient in solving common, hard-to-handle cleaning problems for all the major surfaces in your home as well as specialty areas such as grills, appliances and showers. www.fuller.com
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