Jun 16, 2013 2 min read

National Envelope officials said the company has been granted Chapter 11 bankruptcy protection and will probably be sold.

Even though the company sent conditional Worker Adjustment and Retraining Notification (WARN) letters to employees, including the 400 at its production plant in Scottdale, no layoffs or facility closings are planned.

“Despite speculation and misinformation present in the marketplace, National Envelope has no plans to close any facilities or conduct layoffs, and it is continuing operations, conducting business as usual,” the company said Friday. “With several interested potential buyers, the company is anticipating a smooth sale process.”

The Texas-based company, which has eight production plants and two distribution facilities across the country, said it is being hurt by declining mail volumes, low prices and the sluggish economy.

It filed for bankruptcy protection on Monday, and the court approved its first day motions on Tuesday. Companies entering bankruptcy typically file first day to continue operating and paying suppliers.

National Envelope also secured more than $65 million in debtor in possession (DIP) financing from Salus Capital Partners.

In addition, the company hired Business Recovery Service Group of PricewaterhouseCoopers to assist during the restructuring.

“We continue to be focused on the needs of our customers, and we are receiving an overwhelming level of support from them and from our employees and local government officials in the cities where we operate, as well as our suppliers,” said Jim Pinto, CEO. “We have been honored by the response we’ve received over the past few days, and we are grateful to have partners so dedicated to our mutual success.”