Apr 30, 2008

DMC Rumors

Rumors have been flying about the "demise" of DMC...

DMC is downsizing their workforce 20%, which isn't surprising. I'm sure with the economy the say it is, we'll be seeing a lot more of this with a lot of companies. According to THIS article on Rueters, the company is filing for protection, and a decision has yet to be made whether they'll be allowed to restructure and keep running, or if business will be shut down. It appears it's the European company that's looking for help. Stock trading has been suspended right now.

I also received this press release today:

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
DMC, Inc

So rest easy... we still have our floss! Word travels fast, doesn't it?!


Lady Val said...

Big sigh of relief here. I couldn't imagine the floss division just disappearing since they are the industry leader. Thank you for posting that update!

Michelle-ozark crafter said...

I could not imagine not having my floss!

~V said...

it's amazing how fast 'word' travels!

Carol R said...

My heart sank when I read the first line of your post - phew - what would we do without DMC?

Jenna said...

I was glad to read their press release. It definitely cleared up any misconceptions surrounding all of the news.