WOODSTOCK – BTPO Hess Holdings Inc., a printer of commercial and educational materials, has filed for bankruptcy protection from creditors, citing a slump in the industry and the global economic downturn.
The Kent, Ohio-based company, formerly known as Hess Print Solutions, listed assets of as much as $50,000 and debt of as much as $100 million in a court filing in Delaware.
After a turnaround effort, the company “continued to be adversely affected by overall macroeconomic challenges, industry wide overcapacity and increased pricing pressure” from competitors, according to court papers.
The company plans a sale to Bang Printing of Ohio, subject to an auction, for about $19.2 million, court papers show.
D.B Hess, a book, catalog and directory manufacturer, was founded 1979 in Woodstock. Its facility is located at 1530 McConnell Road.
Hess Print Solutions was formed in 2006 when Wellspring Capital Management, a prominent middle-market private equity firm, acquired D.B. Hess and The Press of Ohio.
According to its website, Hess said the decision to sell to Bang Printing followed an extensive process of reviewing various strategic opportunities for HPS that was aimed at ensuring that it will remain a viable long-term business partner for customers, vendors and employees.
“The strategic decision to pursue a financial restructuring through a sale will allow us to proactively and quickly improve our financial position and ensure we have the resources to meet the needs of our clients, suppliers, employees and other business partners going forward,” Jerry Haywood, interim CEO of HPS, wrote on the website
Bang Printing has more than 100 years of experience in the book and commercial printing industry, with its corporate offices in Brainerd, Minn. Bang offers complete printing, binding and fulfillment services at a competitive price, with facilities in both Minnesota and California.
“Bang Printing is excited to announce this opportunity to acquire Hess Print Solutions. The combination of Bang Printing’s extensive product line and the strong reputation of HPS will allow us to offer our customers one-stop solutions for their print and marketing needs” said Chris Kurtzman, President and CEO of Bang Printing.
HPS has obtained debtor-in-possession financing with certain of its existing secured lenders, which along with the company’s cash flow, is expected to provide the working capital necessary to meet its ongoing obligations while the company pursues approval of the sale.
HPS has filed a number of motions with the court requesting authority to keep the business running as usual. The immediate relief being requested includes a request to pay all wages, salaries and commissions, as well as honor the employee benefits programs, and to continue existing customer programs.
HPS also filed a motion to schedule a hearing to confirm its prepackaged plan and a separate motion to seek approval of the bid procedures to allow the ongoing marketing of HPS’s assets, scheduling an auction with Bang Printing as the stalking horse bidder, and to further schedule a hearing to approve the sale of its assets.
After the sale is approved by the Bankruptcy Court and consummated, HPS will work with the purchaser to address the structure of the combined organizations, with the primary objective to continue to provide superior product, service and technology offerings in a cost-effective way.
The case is In re TPO Hess Holdings Inc., 13-11327, U.S. Bankruptcy Court, District of Delaware (Wilmington).