Business Management

Peter Schaefer, a partner with printing industry M&A and investment banking firm New Direction Partners, analyzes the recent Cenveo Chapter 11 bankruptcy announcement and how it will impact the company, its suppliers and future contracts.

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  • Gina Danner

    Over the last 30 years I’ve seen several service providers in our industry file for bankruptcy. The reason is usually that they really sold their product too cheaply. Because they sold cheap they drove the market price down and forced good players to reduce their pricing to stay in the game. Now is the time to reward those good players with one less bad player.

    It is hard to compete with someone that doesn’t end up paying their vendors.

    Nothing will change at Cenveo other than they don’t have as much debt to service. If the same sales and estimating staff are in place, serving the same customers then absolutely nothing will change.

    They are going to leave LOTS of good vendors with lots of debt and frankly it isn’t right. It’s frustrating to compete against folks who just don’t pay their bills.

    It is difficult to innovate in this industry and it doesn’t appear that this organization has the ability to truly innovate. If all they are going to do is the same old, same old, and just try to sell cheap… perhaps they need to go away.