Pleion Corp. Announces Bankruptcy Recovery Plan
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SANTA ANA — Pleion Corp., an office furniture manufacturer, said Monday it has emerged from bankruptcy protection with a court-approved plan for partial repayment of its creditors and a business plan that is boosting sales.
The company filed for Chapter 11 bankruptcy protection in March 1995, listing about $7 million in debts. The company plans to repay 10% to 50% of creditors’ claims with cash from future sales, said Pleion founder and president Clifford W. Gartung. The exact amount depends on Pleion’s sales over the next five years, he said.
Gartung said his 22-year-old office furniture business filed for bankruptcy protection after a national economic slump shoved office furniture purchases to the bottom of most businesses’ priority lists.
The company briefly considered leaving California for a locale with less expensive business costs, but opted to stay “because we felt we had an obligation to our employees in Orange County,” Gartung said.
As it struggled to cut costs before its bankruptcy filing, Pleion laid off almost 200 of its 350 employees. The company since has recalled 35 workers and now employs 145 people.
“It’s just great to be out [of bankruptcy] and to have the company back,” Gartung said Monday.
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