TRENTON, N.J., July 15, 2020 /PRNewswire-PRWeb/ -- Congoleum®,
one of America's oldest resilient flooring manufacturers, founded
in 1886, today announced that it has initiated voluntary
reorganization proceedings in the District of New Jersey under Chapter 11 of the U.S.
Bankruptcy Code. The Company intends to use the court process to
pursue a financial restructuring designed to reduce its current
debt load, maximize value and position the Company for long-term
success. Congoleum plans to continue operating in the ordinary
course of business, under the court's supervision, and remains
committed to being the consumer-centric Company that has shaped the
resilient flooring industry for more than a century.
"Congoleum is EBITDA-positive and growing, but we must achieve a
more viable capital structure," said Congoleum CEO Chris O'Connor. " Today's reorganization
announcement represents a decisive, positive step that will
strengthen our position for future prosperity. Over the past 134
years, Congoleum has earned the distinction of being one of the
most respected and well-recognized national flooring brands. We
will continue serving our customers, employees and other
stakeholders, operating business as usual throughout this
process."
Congoleum has a long and storied history as a market-leader
driven by an entrepreneurial spirit and committed to excellence in
design, quality and innovation. The invention of in-register
embossing for sheet goods, introducing the world's first rigid and
groutable LVT and most recently the launch of its patented,
digitally printed, PVC-free Cleo™ family of products are but a few
of the innovations that have not only driven the industry forward
but have quite literally changed the way the world sees resilient
flooring.
"Despite our numerous achievements during the past several
years, the Company remains saddled with high legacy debt and
increasing costs associated with running the business. As the
industry adapts to changes in product mix, import vs. domestic
production, and rising operating costs, these contributing factors
make the current level of debt unsustainable," O'Connor explained.
"For the last few months, we have engaged in discussions with our
lenders to evaluate a range of potential strategic plans for the
Company. Ultimately, we determined that the best way to protect the
Company, for the benefit of all stakeholders, is to reorganize
through this court-supervised process."
Stressing that it is "business as usual" at Congoleum, O'Connor
noted that the Company had proactively filed expected motions as
part of the court-supervised process and intends to work closely
with creditors, customers and employees to identify
value-maximizing restructuring plans that will benefit all
stakeholders.
"Congoleum is a heritage American brand that has been in
business since 1886," O'Connor said. "We have a very tenured
workforce of more than 300 people who live and breathe our values
of teamwork, quality and creative problem solving. I am extremely
confident and optimistic about our future."
For additional information about the reorganization, please
visit: http://pacer.psc.uscourts.gov or
https://cases.primeclerk.com/congoleum/Home-Index.
About Congoleum
Since 1886 Congoleum Corporation has been committed to
developing innovative flooring products that push the industry
forward. Congoleum holds numerous patents for novel creations over
the years, and these patents have resulted in products that are
like no others in the industry.
Congoleum manufactures residential and commercial resilient
products that are engineered with state-of-the-art manufacturing
equipment in New Jersey and
Pennsylvania and that demonstrate
Congoleum's quality and design leadership. With more than 5,000
retailers selling Congoleum products across North America, Congoleum is proud of its
strong and iconic past, energized by the future and as always,
unwavering in its commitment to quality, design and innovation.
SOURCE Congoleum