The fourth largest printing factory in the United States applies for bankruptcy protection, and the epidemic continues to spread

The fourth largest printing factory in the United States applies for bankruptcy protection, and the epidemic continues to spread

Recently, LSC communications, an American Printing Group, formally filed for bankruptcy protection.
This will affect most of LSC’s U.S. subsidiaries, excluding its operations in Mexico and Canada.
LSC ranked fourth in the “2019 top 400 North American printing companies” released by printing impressions, the US printing media, with sales revenue of US $3.826 billion.
Net loss of $169 million in the fourth quarter of 2019
In the fourth quarter of 2019, the company’s net sales fell 17.1% to $778 million. The net loss for this period surged to $169 million, compared with a loss of $16 million in the previous year.
LSC said in a statement:
“The decision was made only after a comprehensive assessment of the possibility of debt reduction and LSC customer service. LSC has sufficient liquidity to continue to operate its business safely and efficiently, and will continue to be committed to providing customers with the high quality and reliability services they expect. “
LSC has received $100 million in funding commitments from some of its revolving lenders, subject to certain closing conditions.
The merger plan with quad was stopped by the US authorities in the name of monopoly
LSC used to be part of the Donnelly group. Since its split in 2016, LSC has been mainly engaged in magazine, catalog and book printing services.
In 2019, the third ranked Quad company tried to acquire LSC, but was rejected by the U.S. Department of justice on the grounds of monopoly. LSC can provide magazine, catalog and book printing services similar to quad. This is also an important reason for the U.S. Department of justice to reject Quad’s acquisition.
If the acquisition is approved at that time, the sales revenue of the new company composed of quad and LSC will reach 8 billion US dollars, and it will become the new overlord of the printing industry in North America.
Close eight factories for self rescue
“Since the termination of the merger with quad last year, in view of 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, LSC’s president and CEO.
“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, we continue to evaluate, with the support of senior lenders, the best way to create a more sustainable capital structure for LSC. “
“After a comprehensive review, we have decided to restructure through a voluntary process while continuing to work with lenders to provide the best position for future business.”
New coronavirus epidemic continues to affect the development of enterprises
At present, the global epidemic of new coronavirus continues to rage in the United States, which also makes the development of LSC worse.
“The situation related to the new coronavirus epidemic continues to develop and affect our people, our communities, our customers and our suppliers,” said Thomas Quinlan.
In early trading on April 14, LSC shares fell nearly 30 percent to a record low of $0.027.


Post time: Apr-17-2020

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