Custom HBC Clarifies Financial Restructuring Plan
Late Friday, Promo Marketing received a statement from Larry Wilhelm, CEO of Custom HBC Corporation, regarding the company's status. "To be clear, Custom HBC has not filed for bankruptcy and has no plans to do so," he said.
"There is no doubt Custom HBC has been through a difficult period over the past year and a half, as have many industry suppliers and distributors," he continued. "For HBC, this has resulted in an excessive amount of trade debt on our balance sheet which cannot be serviced by current cash flow. As a result, the company has taken a proactive approach and initiated a voluntary financial restructuring plan with its unsecured creditors. Under this restructuring plan, trade creditor balances will be reduced and paid over a period of time, thereby allowing the company to continue with normal operations. Our financial advisors have advised that this course of action is in the best interests of HBC and our trade creditors."
"None of Custom HBC's financial issues have negatively affected the company's service to its distributor customers. Custom HBC has maintained a 99.9 percent on-time shipping record on its extensive line of health and beauty care products over the past 12 months and intends to continue doing so. Sales and order flow are showing improvement and the company is cautiously optimistic for the balance of the year."
For more information, visit www.customhbc.com.