Centis Inc. filed July 31 for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code.
The Brea-based firm sought approval to obtain up to $6.5 million of debtor-in-possession financing from its banking sources including Fleet National Bank. Negotiations with representatives of a dozen banks have occurred over several months.
The Centis filing at the U.S. Bankruptcy Court in Santa Ana, Calif., did not include subsidiaries in Canada, Ireland or Mexico. Centis manufactures organization, presentation and storage products through multiple units and brands such as Rite, Duo-Tang, JM and Century-Craft.
In a news release, Centis said it had accumulated debt through a series of acquisitions and has experienced difficulty in meetings its financial obligations. The firm has annual sales of about $155 million and the release maintained that sales were strong.
The company retained Casas Benjamin & White LLC of Chicago as a restructuring adviser. SSG Capital Advisors LP of New York is the firm's investment banker.
The business originated in Los Angeles in 1954 and grew through brand and company acquisitions. The firm was known as 20th Century Plastics Inc. until a restructuring in October 1999. Centis structured its operations through divisions for custom products, direct marketing and consumer products.