Friday, January 9, 2009

Confessions of an Ex-Scrapbooker #24

If you know me AT ALL, and you may not, just know that my tone is 100% sincere in every way possible.

Today's a Big Day in the Scrapbooking World.....

I have a very large soft spot for moms, work @ home moms, direct sales moms in particular, and a ZERO tolerance policy for companies that are dishonest. So where am I going with this?? The Creative Memories fiasco!

Over at www.scrapbookupdate.com, Scrap Nancy has been posting and keep us informed. Her posts will help you understand what's really been happening....so I've linked in all her posts here. She has about 4 or 5 very informative posts.

So here's what's happening today.... Click Here!

If you're behind in the story...
Creative Memories filed Chapter 11 a few months back. Hummm...okay, many companies are making changes, "re-structures", etc....but Creative Memories?? I was sort of surprised when I heard the news...but not 100% surprised.

From what I've heard from a VERY VERY good source is that they need a plan to save this company and from everything I have heard, that plan is digital. That claim is supported by their move in their most recent catalog/magazine. The thing is, the digital train has left the station and they just aren't on that train. They may jump on at a station down the tracks, but again, in CM tradition, it's too little, too late. They are jumping on that train with A LOT of baggage, for sure! You dance with the one that brought you. With scrapbook stores closing right and left they have this one window of opportunity to regain their focus and reclaim their spot as leaders in the traditional scrapbooking market.

But will they?

Many CM consultants who are defending Creative Memories, and I respect that, are not being told the ENTIRE truth...And as far as mincing words about WHO is filing for bankruptcy - that is nothing but spin.
Creative Memories generates 95% of Antioch's revenues. Using the fact that your "parent company" is the one that has filed for bankruptcy would only comfort those who are uneducated about business - that isn't a good thing and I feel sorry for those who have placed their trust in people who have nothing but self-interest in mind and have proven that time and time again with their business practices. All of their bad decisions are just catching up to them - and those who can, have taken their money and run!

Digital has been around for over 5,6,7+ years now and doing VERY well. They got on too late, leaving behind what they were REALLY good at. They added too many options...they pretty much created a product line that just cannibalized itself. There are people who are NOT interested in digital....and that's 100% perfectly fine. That's why they should have stayed with what they were good at, traditional, and move forward with those trends quicker. They didn't move forward with the changing trends of traditional, but jumped on every other bandwagon way too late. They cannot survive with being a jack of all trades and master of none, which is what has happened.

here's a fact: 45,000 consultants, around 10% promote digital, (anyone who has published at least once in the past year....) do the math?

I'll end with this little tid-bit of info. I also saw this post on a forum....Obviously this person is slightly angry, but probably rightfully so.

"The Morgans convinced the company to buy back all the family shares at a premium price and then turn the company to 100% ESOP so that the family was completely protected from a down turn and they were set. http://www.morganfamilyfdn.org/family.html

Now most of the employees that have worked there for years to make them millions- have nothing but a pat on the back and a big cheer to say- start over. This will be a perfect case study at MBA schools all over the country on how a company that had so much going for it- could be driven to its death by such poor leadership. Truly a waste, but I guess if it can teach others how not to run a business- then there is silver lining in there somewhere.

Supporting this company and their products, undermines the promises to the employees that have not been kept, How would you feel? losing all of your vested retirement savings and having the same exact management running a new company which assets came directly from these (your) funds.


Supporting this company and their products, undermines the promises to the employees that have not been kept, How would you feel? losing all of your vested retirement savings and having the same exact management running a new company which assets came directly from these (your) funds.

YOUR LIFE, Your Story, OUR WAY.....Sucker!
"

1 comment:

Melissa said...

This whole thing is a huge mess, I feel so sorry to the people who trusted and made investments to this company.