List firm Mal Dunn Associates has filed for Chapter 11 bankruptcy protection. The Aug. 24 filing was made in U.S. Bankruptcy Court, Southern District of New York.
Founded in 1973, the Brewster, NY-based company hopes to conduct business as usual as it reorganizes.
“We planned on moving forward with our doors kept open, working with the courts and their appointed committees, always with the objective of working in the best interest of the creditors and attempting to preserve the best parts [of Mal Dunn Associates],” company president Steve Dunn said in an e-mail to MULTICHANNEL MERCHANT.
Dunn says that while the May postal increase affected the firm’s business, as it did most catalog mail plans, he did not consider that a primary cause for its financial troubles. “Our biggest problem was client attrition,” he noted. “We lost too many list management clients, and their cash flows, too quickly.”
Dunn said he has complied with the court’s demands that a debtor be frugal in its overhead costs and had “greatly reduced staff prior to the filing, trimming at all levels where we though it would be the most effective.”
Also, he noted that certain employees decided to leave the company based on the filing. “However, we do have an extremely competent, albeit lean staff that is perfectly capable of handling all of the business going forward.”