"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.
TRENTON, N.J. (PRWEB) July 15, 2020
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."
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.