Aug. 3, 2009 — Web Press files for Chapter 11 reorganization

Web Press Corp. last week filed for Chapter 11 bankruptcy reorganization in the wake of slowing sales and high costs attributed to the development of a new commercial press.
The Kent, Wash., vendor also reshuffled its executive suite, naming Bernie Molinksi president, succeeding Ricky L. Guinn, who was named director of operations. Mark Ricca remains Web Press’ chairman and CEO.
Molinksi told News & Tech that the company expects to issue a new business plan within the next 60 days. “We are not going away,” he said. “We want all of our suppliers to know that we are a responsible company, and aware of our responsibilities, but we needed to take this step.”
Molinski said last fall’s economic free-fall, in combination with costs associated with developing a new commercial press, forced Web Press to reorganize. “It was a huge economic undertaking,” he said of the research and development required to design the new machine.
The press, he said, will be introduced later this year.
Molinski said Web Press is in the process of obtaining debtor-in-possession financing to ensure its continued operation, and that it doesn’t plan any layoffs or consolidation.
“There is no interruption of sales, service or parts,” he said. Installations will also continue to occur without interruption, he said, citing a Quad-Stack install that took place last week at Horizon Publications in Vancouver, B.C.
Web Press’ bankruptcy petition was filed with the U.S. Bankruptcy Court in Seattle.