papercrafts payments?

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Posted 2/24/2009 by tami sanders in The Pub
 

tami sanders
PeaAddict

PeaNut 119,907
December 2003
Posts: 1,581
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Loc: San Antonio, TX

Posted: 2/24/2009 3:11:12 PM
anyone waiting on a payment from papercrafts?

i had a contract from August that i hadn't been paid for yet, so i e-mailed them.

i received an e-mail back stating that they were "restructuring their debt", and a phone number of an outside agency handling their debt, that i could call.

papercrafts has always been one of my favorite magazines and i submit to them freuqently, but this situation has left a bad taste in my mouth.

things happen, but i would have appreciated if THEY had contacted me to let me know what the problem was. i also would have preferred that maybe they offer product, or even a sub to the mag if payment wasn't going to be made.

i'm sure i will have ZERO chance at getting any payment at all as small "debts" like mine are probably at the bottom of the pile.

so --- if anyone else is waiting for a payment, you might want to e-mail them to see what you need to do.

i don't know if i will be sending them anymore submissions.

it's VERY frustrating. you create and create, submit and submit, and FINALLY get something picked up - and then to not get paid...

i just thought i'd give you gals the heads up, i don't remember seeing anything about this on the boards, and i was sure i wasn't the only one waiting on a check.




...tami

*** my blog: TAMI SANDERS * PAPER CRFTER ***

happy to be scrap'n with: clearsnap, the crafter's workshop and reminisce Design Teams !!!
*** drop by and visit me over at the CLEARSNAP BLOG or THE CRAFTER'S WORKSHOP BLOG ***


purkage
Ancient Ancestor of Pea

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April 2003
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Posted: 2/24/2009 4:32:12 PM
sorry, tami
i think you're a boat with a lot of us that are waiting on payment from CK media and have been given that phone #


-kelly purkey

It's Me, KP!

Velouria
Pixie Pea

PeaNut 41,800
July 2002
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Loc: Arizona

Posted: 2/24/2009 5:02:03 PM
Uh oh. I had something published in December and was told that I would receive a check within 60 days of it hitting the shelf.




Nicole in TX
The Peas did what we do and went insane over it

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June 2001
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Posted: 2/24/2009 5:20:40 PM
Thank you. I don't like that they are not being honest. I won't submit anymore until they pay up.



TxScrapAddict
PeaNut

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October 2007
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Loc: Texas

Posted: 2/24/2009 7:12:36 PM
Hmmmmm. "Restructuring debt" is a bankruptcy term........ I won't submit to them them. the debt would become unsecured and chances are there would be NO payment forthcoming. Shame on them for not being upfront with everyone.


Vicki Flinchum
Txscrapaddict
www.texasscrapaddict.blogspot.com
I Design For:
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Zutter Innovative Products (OZZ)


HeyAnne
Enjoying Today

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November 1999
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Loc: CT, USA

Posted: 2/24/2009 7:41:31 PM
I have been waiting on payment from the 50 moments book -- the girl I spoke with told me that I would paid 'as funds became available' and that my invoice would be paid after invoices that were dated before mine were paid first.

I didnt even get another phone number to call.


Felt Flower Collections at: www.carefreeglimmer.etsy.com

Certainty of death. Small chance of success. What are we waiting for?
- Gimli

#1 Buckeye Fan

PeaNut 130,438
February 2004
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Posted: 2/24/2009 8:04:52 PM
Uh-oh...........not good. It reminds me of PaperKuts' situation several years ago.



B.Torgerson
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March 2006
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Posted: 2/24/2009 9:19:59 PM
I was just going to mention the PaperKuts thing. What I don't get is when the magazine folds, they are still taking orders for subscriptions. I hope Papercrafts is Ok, I enjoy their publication.

tami sanders
PeaAddict

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December 2003
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Posted: 2/25/2009 12:49:27 AM
yep - i think i'll be holding off - unless it's something that i can be compensated for from a dt or manufacturer.

i have had LOTS of projects lately that i haven't been paid for, haven't gotten returned, etc. due to magazines folding.

i was thinking of FINALLY submitting somethings to Simple Scrapbooks - when i heard they were closing. i mentioned it at a scrapbook store and several of the ladies there said they had just renewed their subs! it seems like magazines would at LEAST quit accepting subscriptions when they were going to close!


...tami

*** my blog: TAMI SANDERS * PAPER CRFTER ***

happy to be scrap'n with: clearsnap, the crafter's workshop and reminisce Design Teams !!!
*** drop by and visit me over at the CLEARSNAP BLOG or THE CRAFTER'S WORKSHOP BLOG ***


michaelcsmommy
StuckOnPeas

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Posted: 2/25/2009 8:12:23 AM
Having been through one of these "restructuring" events before with a company that brought in consultants (actually we went through several - none of whom could save Herr's) that specialize in turnarounds, I can give a little insight on this. For those who wish they had been more upfront, I can tell you - this process has probably been going on for months with the restructuring company and CK and Papercrafts staffs are more than likely under strict orders to NOT say anything, to anyone. For legal purposes, once a turnaround company is in place, every communication in regards to debt has to be carefully done and for that purpose, they usually want "one of their own" doing it, rather than someone from the company they are turning around. It's not that they are being dishonest, it's that they can't have staff making promises that the turnaround company can't feasibly allow them to keep. Those who are allowed to say anything are given a carefully worded email and/or phone script, usually directing the person to the company representative handling the debt restructuring.



celestialscrapper
BucketHead

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September 2004
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Posted: 2/25/2009 8:22:30 AM
I am only owed for one project and have another one that they have that is not yet published. CRG is a turnaround, bky specialist that I have worked with in my job. Hopefully there will be some surviving company after the thing is done.

The problem I see with them continuing calls and accepting projects is that they have now basically admitted insolvency and they are incurring new debt and promising to pay you. If there is a Chapter 11 there is sometimes a "convenience" class for small claims that get paid in full. That might be our best hope...however, that could be a long time off. A Chapter 11 could be better for us because once they file, at least going forward they would pay their current bills and the older ones would be stayed.

http://www.scrapbookupdate.com/scrapnancy/2009/02/trouble-at-ck-media.html



gimmechocolate
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January 2009
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Posted: 3/2/2009 9:53:31 AM
So our only hope is accepting the settlement offer for 40% of what they owe us? If we don't sign, we're S.O.L.? Anyone know? We have to send them in by 5:00 p.m. March 6!

michaelcsmommy
StuckOnPeas

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May 2003
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Posted: 3/2/2009 10:53:29 AM
Honestly? Take the settlement. Holding out, hoping to get it all will probably result in your not getting anything at all. No matter what CK may LIKE to do, the bottom line is the consultants are there to make those decisions for them to put them back into a good position and survive. They (the consultants) are looking at this from a business standpoint, not a design perspective. They see a bunch of small (in the scheme of things) invoices from people THEY see as replaceable. If you think of how many submissions CK gets versus what they publish, they could conceivably go with all new contributors and still have a great, fresh publication. In the big picture, contributing artwork is a tiny portion of the debt as well. The consultants will be more concerned with getting printers and phone and light bills paid.

As a designer, I don't want to give the impression that I am making light of the importance of the projects CK uses and the contracts that were signed or anything. But having been through this before and spent countless hours in meetings with the same type of consultants, I know how brutal they need to be in finding ways to make the company survive. And the smaller debts need serious proof of a need for ongoing business to get paid. In my opinion, the fact that 40% has been offered means that CK fought pretty hard for you.



GettinScrapHappy
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Posted: 3/2/2009 8:54:52 PM
40% means they fought hard for us?
Fought who? The consultants they hired to do their dirty work?


I'm gettin' a little ScrapHappy!
visit my blog at ScrapHappy
Scrapbook humor and hijinks!

michaelcsmommy
StuckOnPeas

PeaNut 88,016
May 2003
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Loc: St. Clair Shores, MI

Posted: 3/3/2009 7:15:33 AM

40% means they fought hard for us?
Fought who? The consultants they hired to do their dirty work?


The consultants they hired to try to turn the company around so that they can survive, pay ANYTHING (if they were taking the easy way out, folding and declaring bankruptcy at this point,the designers would be getting nothing at all as an unsecured debt), and continue putting out a magazine.



michaelcsmommy
StuckOnPeas

PeaNut 88,016
May 2003
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Posted: 3/3/2009 7:38:05 AM
Just as a little more insight - that convenience class is meant to get small debts paid in full that it can be proved to the bankruptcy court that those creditors are necessary for administrative convenience. A court will generally allow only so much of the claim to go towards this (and if they owe $80M and are only worth $20M...). The first thing that would be put into this kind of category and probably deplete any funds available towards it would be unsatisfied subscriptions which have been paid for.



celestialscrapper
BucketHead

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September 2004
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Posted: 3/3/2009 9:12:11 AM
Good point about the convenience class. While 40% may not seem like they "fought hard," that is a pretty good payout for unsecured creditors in a Chapter 11. Usually companies go that way because they can't continue with the debt they have. I know it still doesn't seem right, but let's just hope this lets them regroup and keep in business.



matts sweetpea
PeaNut

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August 2008
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Posted: 3/5/2010 4:21:03 PM
I know how frustrating and betraying it must feel to not be paid for the fruits of your creative labor, but considering that CK media is only offering 25 cents on the dollar to its corporate debt holders (you know, the ones with vicious high priced attorneys?), it sounds like 40 cents on the dollar to contributors really WAS something they fought for.

On the other side of the proverbial coin, I just renewed my subscription for 2 MORE YEARS because they sent me a low offer to "keep my subscription coming to your new home" (I'd just bought a house). I was more than a little miffed to see this and other articles relating to their bankruptcy. However, there is still a chance the mag will pull through this (cross your fingers!), and at least they're not as bad as Linens and Things when they went out of business. They closed their doors on Jan. 1 of 2009 I believe, and they were still selling gift cards after Christmas! as what I think they called "bankruptcy mitigation." Now that is sinister.

teriishere
AncestralPea

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January 2001
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Posted: 3/6/2010 6:58:47 AM
I happened to pop by and see this thread.
I just want to say to please note this is a very old thread. It's over a year old.
The payment issues referenced with the settlement happened a year ago before Paper Crafts (and CK for that matter) changed hands. Paper Crafts is no longer owned by CK Media.
The new owner is on stable ground.
As one who has worked with Paper Crafts extensively under the new management, I can just say from my personal experience this issue is pretty much dead. Things have been paid and timely.

Teri







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