You know the boom times are over when it “bankruptcy PR” becomes the newest market niche for PR agencies. PRWeek reports that “retailer Mervyns is working with Joele Frank, Wilkinson Brimmer Katcher for communications support during its Chapter 11 filing,” which the company made on Tuesday.
What does a PR agency do for a Chapter 11 retailer? According to PRWeek:
The agency is conducting proactive outreach to key vendors and investors via letters, e-mails, a restructuring hotline, and a section on the company’s Web site outlining the restructure, according to Andrew Siegel, a managing director at Joele Frank, Wilkinson Brimmer Katcher.
The team also provided employees in the stores with communications materials to help address consumers who may have questions about the restructuring.
Our message is business as usual, and customers can continue to expect the same thing,” Siegel said. “[Vendors] are comforted that the company has a $465 million dollar dip [once court approved] with cash from operations to provide financing throughout the filing process.”
The agency will continue to update company stakeholders, customers, employees, investors, and landlords through Web updates and letters.
One question not addressed, but that agencies should consider: getting paid. When a company files for Chapter 11, bankruptcy judges and lawyers get involved regarding when and what order creditors get paid. This is usually negotiated before a business starts working with a post-Chapter 11 company.
