We asked Stephen Mancuso, Vice President of Marketing, The DMC Corporation to comment on the news of their parent company Dollfus, Mieg & Cie applying for creditor protection in a commercial court Tuesday, April 29th. Here is his response:
Thank you very much for offering to list a statement on your blog and in Needlework Retailer that will allow DMC to address the false information and "gossip" swirling around the industry. I’ve attached is a press release that contains a statement from Mr. Joseph McCabe, President/CEO of DMC, Inc., the US subsidiary of the Dollfus, Mieg & Cie Company. This will clarify how the restructuring plans of our parent company in France will have no effect on our ability to continue doing business in the US in both the short and long terms.
South Kearny, N.J., April 30, 2008. "In recent days, there has been a significant amount of information in the form of press releases, media reports, etc. regarding financial difficulties and operational restructuring plans at the DMC corporate offices in France. Those activities and court filings within the legal system in France are directed towards seeking a formal resolution for two divisions within the DMC Corporation (sportswear fabric and a small chain of retail stores found only in France) that are not related to the embroidery thread and craft activities, which remain the core business of the corporation. In addition, the U.S. division of DMC operates as a separate legal and financial entity with its own financing, receivables, payables, etc, and as such, is not included in any legal filing or petitions to the courts that may occur in France. We are financially secure and fully prepared to conduct business as usual here in the U.S. DMC has been manufacturing needlework threads for 262 years and we remain committed to providing stitchers with the highest quality embroidery floss, specialty threads, needlework fabrics and other supplies they need to continue to enjoy the wonderful art of needlework. We look forward to continuing to serve all of our customers and loyal users of DMC products into the future." Joseph D. McCabe President/CEO DMC, Inc.