Lots of Changes at Creative Memories
A couple of recent St. Cloud (Minn.) Times articles have detailed a series of events at Creative Memories that seem to indicate the company is still working on recovering from its bankruptcy last year:
- Asha Morgan Moran, the last remaining member of the Morgan family to hold a position with the company, resigned as the company's Global President & CEO last month after the board of directors decided to replace her as CEO and offer her a different position. She was replaced by Chris Veit, who joined the company as COO after the bankruptcy.
- The company announced May 11th that it was cutting 30 jobs, 6% of its payroll, mostly in its St. Cloud offices.
- Sales from Nov. 2009 to April 2010 "suffered" in the recent words of Veit to the St. Cloud Times.
In other key statements to the media recently, Veit indicated that the company plans to release new products in August, and also acknowledged that the company cannot rely solely on growth in digital product sales to rescue the company.
In a related matter, although it doesn't directly involve Creative Memories, former employee shareholders are still involved in a lawsuit against various individuals and firms that the suit blames for the loss of the employee shareholders' pension value in the company's bankruptcy. The only progress that has been made in the case since Scrapbook Update's report on it in January is the denial of a motion by one defendant to dismiss the case. Lengthy litigation likely remains in the case.
