CorpLogoWare Ceases Operations, Begins Liquidation Process

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CorpLogoWare Ceases Operations, Begins Liquidation ProcessAs first reported in a Breaking News Alert yesterday, CorpLogoWare (asi/168827) has announced to its employees that it has gone out of business. As of yesterday, the former Top 40 distributor has ceased operations, laid off all of its employees except for a very small transition team, and has begun the process of liquidating its assets. Ultimately, CorpLogoWare was forced to succumb to a mountain of debt that included $13 million to Comerica Bank (one of its lenders), more than $8 million to Banyan Mezzanine Fund (another lender), and about $5 million to industry suppliers. These numbers were shared with employees yesterday afternoon during a conference call run by CorpLogoWare CFO Bob Evers.
"We announced a shutdown this morning," said Evers during the conference call. "The bank has put us in default so we're actively starting to liquidate the company today. For now, this isn't a bankruptcy situation and hopefully our creditors won't take legal action against the company."As of March 17, Comerica Bank put the liquidating effort into the hands of Evers and a small transition team that was focused on collecting on accounts receivables and any other assets that CorpLogoWare had. To collect its assets, Evers told employees that they'd have to go so far as to send all of their computer equipment and any other electronics owned by CorpLogoWare back to the company. And, Evers said, the bank would not be paying employees for any untaken vacation time and for commissions that salespeople believe they're still owed. He also said that the bank would have to evaluate its position with any vendors in the market.
"The bank has a lot of leeway in this situation because they're owed a lot of money and we can't pay them back for our loans," Evers said on the call. "They own all of our assets now and they're trying to recoup as much money as they can. So, they're not really going to be in a position to write checks to anybody right now. Vendors most likely won't see any money out of this liquidation."