NE Opco files for Chapter 11 bankruptcy protection
NE Opco files for Chapter 11 bankruptcy protection, blames shift toward email, online bill pay
WILLMINGTON, Del. (AP) -- Envelope maker NE Opco Inc. has filed for bankruptcy protection, saying that the continued shift toward electronic communication has dramatically reduced demand for its products.
The privately held Frisco, Texas, company formerly known as National Envelope filed for Chapter 11 in U.S. Bankruptcy Court in Delaware. It estimates both its debts and its assets at as much as $500 million.
The company, founded in 1952, previously filed for bankruptcy protection in 2010. As part of that restructuring it slashed costs, shuttering facilities and eliminating jobs. A private equity firm acquired the bulk of the company's assets later that year.
But in the years since, the company's sales have continued to tumble nearly 20 percent a year, as email and services like online bill paying have increased and its competitors have cut prices.
