Catalina Marketing seeks Chapter 11 bankruptcy protection

A marketing company in another state recently determined that it needed to take dramatic steps to eradicate its financial troubles. The company, Catalina Marketing, thus decided to file for Chapter 11 bankruptcy. Any company in Massachusetts that is similarly struggling financially can make the same move as part of a coordinated plan to bounce back financially.

Catalina is part of a company called Checkout Holding Corp., which is traditionally known for distributing cash-register coupons. According to Catalina officials, there is an agreement between the majority of the company’s senior lenders and the business itself that would trim Catalina’s debt by around $1.6 billion. By filing for bankruptcy, Catalina could continue to operate while working to cut its debt amount from $1.9 billion to about $280 million.

Catalina was established back in 1983 and has handled a large number of products, including Fritos and Febreze. However, its marketing money has become scarce over the years. For this reason, the company is focusing more on digital apps, where it can easily customize customer discounts, versus print receipt coupons.

Even companies that have flourished for years may end up struggling due to changes in the economy or in their respective industries. However, filing for Chapter 11 bankruptcy protection may help them to finally break free from the grip of overwhelming debt. In fact, many companies come back stronger than ever financially after going through the bankruptcy process. An attorney in Massachusetts can help these companies to navigate the bankruptcy filing process with confidence, ensuring that their rights are protected each step of the way.