Nimbers are in and are flatter than a smashed ant I've been saying for four years the huge debt burden will ultimately kill Cen-Vey-HO, despite the buy outs, cash extractions, closures, spin-offs and nimber fiddlin'... and December 2013 is fast approaching. The attempt outlined in today's Blob Burton nimbers blog to find a unsecured loan to pay off the debt is delusional... fat chance, fat #$%$.
Split up wholesale and commercial envelope divisions and spin off to competitors. Are our major competitors eyeing up a peice of this? It may be the only way to hike up prices and take folding machines off the floor. Supplier are nervous with every order as they think it may be the last ,or they won't get paid.
They barely get payed as it is. They are fools to think that the fact that they wait 90+ days for 30 days terms and get nothing until they threaten to cut off supplies is anything but a sign of desperation. Any exposure to CVO should be considered bad debt and if they do happen to get paid it is either a gift or they are critical to a revenue stream. So that's that. Extend credit to CVO all you like but at your own risk.
Problem with that idea is envelopes are more than half of the revenue and EBITDA so Burton would never do that.