Pazazz Printing CEO Warren Werbitt published the following open letter regarding the current state of his company. Pazazz filed for restructuring in March.
On Monday March 1, 2010 Pazazz Printing filed an NOI (CCAA) to
preserve and maximize the value of the business. Over a 51 day period
Pazazz Printing made a proposal to its creditors and suppliers and
negotiated an agreeable restructuring plan. On Tuesday April 20, 2010
our proposal to the creditors was accepted!
I am writing this letter to explain what I have experienced. It's been a long nine weeks and we can finally move forward.
For me personally, it has been a mentally and morally difficult
experience. After 18 years of working to build Pazazz Printing and its
team I suddenly thought the world caved in. We had just finished a
major expansion in late 2008 and I was feeling on top of the world. Who
could have anticipated what was coming in 2009?
2009 brought the recession and absolute panic. The business world
changed and the brakes were put on. Businesses stopped spending and
people were laid off out of fear. This resulted in a chain reaction,
causing other businesses difficult times. Banks got nervous and credit
became scarce. Businesses were burdened and forced to act as banks for
their clients. The pressure on the system was unbearable and Pazazz
Printing got caught in the loop.
What I learned from this challenge is what goes around comes around.
Everyone you pass on the way up you pass on the way down. If you always
treat people with respect and dignity then they will treat you the same
in return. I have been overwhelmed with support. What I realized is
that I have connected with so many people over the years, that Pazazz
Printing is well positioned in the industry and that the company has a
solid reputation.
When I knew we had no choice but to file the NOI, I spoke with every
employee, called most of our suppliers and as many clients as I
possibly could. My hands shook every time I picked up the phone. Once
they answered and I forced the words out of my mouth, most people's
reactions were supportive - they were truly sorry to hear about our
situation. Most suppliers offered their help in many ways, except
credit (of course which I expected). Not one supplier stopped selling
to us. When suppliers picked up remaining consignment goods they were
surprised to see everything accounted for. What we had not used was
returned. I was told that often everything disappears.
The last nine weeks has been a tremendous wakeup call. Pazazz
Printing is not playing games. It was always our intention to stay in
business, grow our business and continue servicing our clients.
Pazazz Printing has not laid off any employees. We have always run
lean and everyone is committed to help the company succeed. I firmly
believe that with the encouragement and cooperation of our dedicated
team, loyal clients and committed suppliers Pazazz Printing will
persist and become a better and stronger company.
I would like to thank everyone for their continued support and business.
On Monday March 1, 2010 Pazazz Printing filed an NOI (CCAA) to
preserve and maximize the value of the business. Over a 51 day period
Pazazz Printing made a proposal to its creditors and suppliers and
negotiated an agreeable restructuring plan. On Tuesday April 20, 2010
our proposal to the creditors was accepted!