Dimac Direct Files for Chapter 11
Dimac Direct has filed for Chapter 11 bankruptcy and intends to conduct a court-supervised closing of its operations, including the liquidation of its assets and distribution of the proceeds to creditors.The filing was made in U.S. Bankruptcy Court in Wilmington, DE.
Dimac, the direct mail services and products subsidiary of Dimac Marketing Partners, previously had announced that it would wind down its business to stop its operating losses after all opportunities to sell the company had been exhausted.
On June 29, Dimac Direct notified employees of layoffs as a result of the cutbacks.
Dimac Marketing Partners Inc. and its three indirect subsidiaries -- DMW Worldwide, which provides agency services; MBS, which offers information and insight services; and Palm Coast Data, which provides direct response management and value-added fulfillment services -- are not involved in the Chapter 11 filing of Dimac Direct.
Separately, Dimac Marketing Partners has retained Veronis Suhler & Associates to explore equity funding opportunities.
