Large Printing Firm Files for Chapter 11

SANTA ANA —  A large printing company that prints several area newspapers, including the South Bay Daily Breeze in Torrance and the Los Angeles Sentinel, has filed for Chapter 11 reorganization in federal bankruptcy court here.

Robert John Industries Inc., which employs about 160 people at its Huntington Beach headquarters and printing plant, listed assets of $8.2 million and liabilities of $10.6 million in its petition, filed Nov. 22.

The company also prints a number of college catalogues, including those for UCLA, Stanford, Cal State Long Beach and San Diego State.

Andrew K. Mauthe, the company’s bankruptcy attorney, said the printing firm’s financial difficulties stem from a debt-financed buyout by a management group in the mid-1980s. Those problems have been exacerbated by the slow economy.

“When everything settled down after the buyout,” he said, “they discovered that there was a lot more debt than anyone had thought.” He said the company opened a Las Vegas branch operation shortly after the buyout and before the current chief executive was hired.

“It was not a well-thought-out plan and cost a lot of money” and has since been closed, Mauthe said.

Matthew Clark, Robert John’s chief executive, said the company will continue honoring all of its contracts.

Because of a series of cost-cutting measures, including an across-the-board 10% pay cut, the company “is in better shape now than 60 days ago,” Clark said.

Robert John posted 1990 revenue of $22 million, he said. Sales should reach only $17 million this year.

“This is a viable business,” Clark said. The company expects to be able to satisfy its creditors with a repayment plan and emerge from bankruptcy as early as February, he said.