I'm starting to hear rumors here and there about DMC's financial situation. I see that they have added information about their stock price and press releases to their home page and have delayed announcing financial results from 2007. I've been told that their thread division isn't in trouble, it's their fabric division but I have no clue whether this is correct.
http://www.dmc.com/
We'll just file this under Rumors and move on.
UPDATE: Here is a press release sent by DMC America to some cross stitch designers who shared it with some business lists. I quote it in full--
For Immediate Release
South Kearny, N.J., April 30, 2008.
In recent days, there has been a significant amount of information in the form of press releases, media reports, etc. regarding financial difficulties and operational restructuring plans at the DMC corporate offices in France. Those activities and court filings within the legal system in France are directed towards seeking a formal resolution for two divisions within the DMC Corporation (Sportswear fabric and a small chain of retail stores found only in France that are not related to the embroidery thread and craft activities, which remain the core business of the corporation.
In addition, the U.S. division of DMC operates as a separate legal and financial entity with its own financing, receivables, payables, etc, and as such, is not included in any legal filing or petitions to the courts that may occur in France. We are financially secure and fully prepared to conduct business as usual here in the U.S.
DMC has been manufacturing needlework threads for 262 years and we remain committed to providing stitchers with the highest quality embroidery floss, specialty threads, needlework fabrics and other supplies they need to continue to enjoy the wonderful art of needlework. We look forward to continuing to serve all of our customers and loyal users of DMC products into the future.
Joseph D. McCabe
President/CEO
DMC, Inc.
Main blog at http://bl0g.360.yahoo.com/chillyhollow
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