Tamrac files for Chapter 11

Tamrac, Inc. filed its voluntary petitions for reorganization in the U.S. Bankruptcy Court for the Central District of California in Woodland Hills, CA. The Company is represented by Landau Gottfried & Berger LLP in its Chapter 11 proceedings.

“For the last couple of years the Company has faced a number of significant challenges, including weakened demand for point-and-shoot cameras, the economic recession which further hampered sales, as well as a shrinking number of specialized retail outlets,” said Jesselyn T. Cyr, President of Tamrac, Inc. “The actions we are taking today will allow us to lower our debt structure and re-align our balance sheet with the realities of today’s business environment. We fully expect to emerge from Chapter 11 as a stronger, more competitive company than we are today.”

Tamrac stated that, as of the filing date, it has sufficient cash to fund daily operations, including post-petition payments to vendors and partners and to meet customer and employee obligations through the duration of the restructuring. As part of its First-Day Motions, the Company has sought permission to continue to pay employee wages and benefits and pay suppliers for post-petition obligations without interruption.

“On behalf of the entire management team, I would like to thank our sales representatives and suppliers for their continued support during this process. I also want to recognize our dedicated employees, whose continued support and commitment are crucial to the future success our company. We are all dedicated to making this financial restructuring a success,” Cyr concluded.