Kent & Spiegel Confirms Bankruptcy Filing
"We are in business to stay," said Peter Spiegel, the company's chairman, in a statement. "Our restructuring is being supported by the company's secured creditors. We remain open for business and we continue to actively and aggressively develop projects which will be launched over the next several months."
The filing marks the second major infomercial marketing company to declare bankruptcy this year, following the filing of Inphomation Inc., Baltimore, in February.
Kent & Spiegel was once one of the largest direct marketing companies in the infomercial industry, with such hits as the "Sobakawa Pillow," whose sales exceeded $70 million last year. The buckwheat pillow product, manufactured by Nature's Pillows Inc., Bensalem, PA, is now being marketed by Media Enterprises Inc., Philadelphia, after Kent & Spiegel allegedly defaulted on its marketing license for the product.