Monday, January 6, 2014

Bag maker Tamrac files for Chapter 11 bankruptcy

Order fulfillment, customer service to continue uninterrupted


By Joel Shore
January 6, 2014

Camera bag and case maker Tamrac today filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code to restructure its debt. Company officials said Tamrac will continue to operate in the normal course of business and provide merchandise to retailers worldwide. Orders for products will be fulfilled.

“For the last couple of years the company has faced a number of significant challenges, including weakened demand for point-and-shoot cameras, the economic recession which further hampered sales, as well as a shrinking number of specialized retail outlets,” said Jesselyn T. Cyr, Tamrac president. “The actions we are taking today will allow us to lower our debt structure and re-align our balance sheet with the realities of today’s business environment. We fully expect to emerge from Chapter 11 as a stronger, more competitive company than we are today.”

Tamrac said that it has sufficient cash on-hand to fund daily operations, including post-petition payments to vendors and partners and to meet customer and employee obligations through the duration of the restructuring. As part of its First-Day Motions, the Company is seeking permission to continue to pay employee wages and benefits and pay suppliers for post-petition obligations without interruption.

The company, based in Chatsworth, Calif., filed its voluntary petitions for reorganization in the U.S. Bankruptcy Court for the Central District of California in Woodland Hills, Calif. Tamrac was founded in 1977.