CREATIVE MEMORIES ANNOUNCES AGREEMENT TO RESTRUCTURE DEBT
Files Pre-Packaged Plan of Reorganization
ST. CLOUD, Minn. – November 13, 2008 – The Antioch Company, parent company of Creative
Memories, a leader in the memory celebration industry for more than 20 years, announced today that it
has reached an agreement with its lenders to restructure its debt.
To facilitate this agreement, The Antioch Company and six of its subsidiaries today filed voluntary
petitions for Chapter 11 protection with the U.S. Bankruptcy Court for the Southern District of Ohio. The
Antioch Company has elected to seek bankruptcy protection in order to restructure its debt while
continuing to maintain normal business operations without interruption. The debt restructuring is
embodied in the prepackaged plan of reorganization also filed today. Under the plan, which has the full
support of the Company's lenders, the process is expected to be completed by the end of this calendar
"After completing a comprehensive strategic review of the business, The Antioch Company, with the
guidance of industry experts and turnaround specialists, determined that a pre-packaged filing was in the
best interest of the future of Creative Memories," said Asha Morgan Moran, global president of Creative
Memories. "We are confident that the restructuring will provide strong opportunities for the company’s
consultants, employees, and customers.
“This process demonstrates our commitment to the future of Creative Memories,” Morgan Moran said.
“We will ensure that product development remains a top priority so that the company and our 55,000-plus
global sales consultants will continue to benefit from our respected position in the traditional scrapbooking
industry. At the same time, new product development will assist us in expanding our role into the digital
“The financial restructuring of The Antioch Company will allow Creative Memories to pursue its mission of
preserving the past, enriching the present, and inspiring hope for the future,” added Creative Memories
Co-Founder Rhonda Anderson. “We are focused on our bright future as we further expand our offerings
into digital scrapbooking and other innovative memory celebration options while continuing to serve our
traditional scrapbook market.”
The company does not anticipate any reduction in employee headcount or changes in operating facility
locations. The current management team will continue to manage the company’s day-to-day operations.
In addition, The Antioch Company announced that it has filed a motion for authority to enter into a credit
agreement with its lending group, which will provide up to $4 million in additional liquidity for restructuring
and future investments.
About Creative Memories
As a leader in the memory celebration industry for more than 21 years, Creative Memories specializes in
selling premium-quality, photo-safe albums, scrapbooking materials, digital photo books, and photo
organization software. Based in St. Cloud, Minn., Creative Memories markets its products at in-home get-
togethers through more than 55,000 independent global sales consultants in eight countries around the
world. More information about Creative Memories and its products, services and career opportunities can
be found at www.creativememories.com.
Some of the statements in this press release include statements about our future expectations. Statements that are not
historical facts are "forward-looking statements." Such statements may include projections of financial and operational
results and goals, including revenue, EBITDA, Adjusted EBITDA, profitability, savings and cash. In some cases, you can
identify these so-called "forward-looking statements" by our use of words such as "may," "will," "should," "expect," "plan,"
"anticipate," "believe," "estimate," "predict," "project," "intend" or "potential" or the negative of those words and other
comparable words. These forward-looking statements are subject to known as well as unknown risks and uncertainties
that may cause actual results to differ materially from our expectations. Our expectations are based on various factors
and assumptions and reflect only our predictions. Factors that could cause actual results to differ materially from the
forward-looking statement include technological, regulatory, public policy or other developments in our industry,
availability and adequacy of capital resources, current and future economic conditions, the existence of strategic
alliances, our ability to generate cash, our ability to implement process and network improvements, our ability to attract
and retain customers, our ability to migrate traffic to appropriate platforms and changes in the competitive climate in
which we operate. The Company undertakes no obligation to update publicly any forward-looking statements, whether
as a result of future events, new information or otherwise.