The fourth largest printing factory in the United States has applied for bankruptcy protection. The impact of the epidemic continues to spread
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core tip: Recently, the American Printing Group LSC communications officially applied for bankruptcy protection. This will affect the business of most subsidiaries of LSC in the United States to achieve the purpose of temperature change. It must be designed according to the specifications of hydraulic universal testing machine, but it does not include it. In the "2019 top 400 printing enterprises in North America" released by printing impressions, LSC ranked fourth with a sales revenue of $3.826 billion
the net loss in the fourth quarter of 2019 reached $169 million
in the financial report of the fourth quarter of 2019, the company's net sales decreased by 17.1% to $778million. During this period, the net loss surged to $169million, compared with a loss of $16million in the previous year
lsc said in a statement to further improve the effectiveness of factor allocation and improve the quality of factors:
"the company made a decision only after comprehensively evaluating the possibility of debt reduction and LSC's customer service. LSC has sufficient liquidity, can continue to operate its business safely and efficiently, and will continue to be committed to providing customers with the high-quality and reliable services they expect."
lsc has received a US $100million financing commitment from some of its revolving lenders, subject to certain closing conditions
the merger plan with quad was stopped by the U.S. authorities in the name of monopoly
lsc was once part of Donnelly group. Since its split in 2016, LSC has mainly engaged in magazine, catalogue and book printing services
in 2019, Quad, which ranked third, tried to acquire LSC, but was rejected by the U.S. Department of justice on the grounds of monopoly. LSC can provide magazine, catalogue and book printing services similar to quad. This is also an important reason for the US Department of justice to reject the acquisition of quad
if the acquisition was approved at that time, the sales revenue of the new company formed by quad and LSC would reach $8billion, and it would become the new overlord of the printing industry in North America
close eight factories to seek self-help
"since the termination of the merger with quad last year, in view of the fundamental changes in the industry, LSC's board of directors and management team have taken proactive measures to improve our overall cost structure, streamline our manufacturing platform, and continue to seek new business opportunities", said Thomas Quinlan, chairman and CEO of LSC
"during this period, we have closed or are closing 8 factories, won some new contracts, and fulfilled our commitments to customers and suppliers. At the same time, with the support of senior lending institutions, we continue to evaluate the best way to create a more sustainable capital structure for LSC."
"after a comprehensive review, we decided to restructure through voluntary procedures and continue to cooperate with lenders to provide the best positioning for future business."
the covid-19 epidemic continues to affect the development of enterprises
at present, the global epidemic of novel coronavirus continues to rage in the United States, which also makes the development of LSC worse
thomas Quinlan said, "the situation related to the covid-19 epidemic continues to develop and affect our people, our communities, our customers and our suppliers"
in the morning of April 14, LSC shares fell nearly 30% to a record low of $0.027