Evatone files for bankruptcy reorganization

A landlord dispute has triggered Clearwater's Evatone Inc. to file for Chapter 11 bankruptcy reorganization.

Executives with the 83-year-old printing and packaging company tried Tuesday to reassure their 200 employees and customers that they plan to keep operating.

"We're going to do everything in our power to make this seamless for them,'' Holland & Knight attorney Rod Anderson said on behalf of the company.

In a filing in U.S. Bankruptcy Court in Tampa late Monday, the privately-held firm did not list total assets or debts but indicated its top 20 unsecured creditors were owed a combined total of nearly $4-million.

"It kind of hit us by surprise. We were aware they were struggling somewhat but felt they would recover,'' said Tom Grove, branch credit manager at Tampa-based Mac Papers, which topped the list of unsecured creditors.

Mac Papers, which has supplied paper products to Evatone since 1982, is owed about $370,000. Aware that Evatone was having cash flow problems, Mac Papers recently started working on a cash-on-delivery basis, Grove said.

Grove said the company appeared to be moving in the right direction to pare payroll after it endured problems with a changing business structure, a tougher economy and "maybe some mismanagement.''

Anderson declined to discuss circumstances that led to the bankruptcy filing, but said the precipitating factor was a dispute with the Chicago investor group that owns its headquarters at 4801 Ulmerton Road.

Evatone is negotiating with its landlord to take less space and is weighing other cost-cutting moves, Anderson said. Layoffs have not been ruled out. In 2007, Eva-Tone posed $36-million in sales, but Anderson indicated a "retreat'' in sales this year.

Evatone was known for decades as Eva-Tone, but it dropped the hyphen five years ago as part of a high-tech makeover. The company made its mark as a maker of music industry products, perhaps best-known for revolutionizing audio recording with its production of flexible vinyl records. For more than 30 years it partnered with the Library of Congress to deliver "talking books and magazines'' helping the sight-disabled. The company started making CDs and CD-ROMs in the early 1990s and that grew into a large part of its operation.

From its Ulmerton Road plant, the firm's commercial printing operation has churned out everything from sheet music and multicolor books to inserts tucked into CDs. Historically, a large chunk of its sales had been tied to products for the religious music industry.

Comments on this article

by Marie	Nov 10, 2008 1:08 PM
Bottom of the barrel must have started when you left Janey! With your attitude, I wouldn't want you on my team! That must leave us closer to the TOP!

by Dedicated	Nov 9, 2008 11:11 AM
This company is truly amazing! For those that have left, let go! For those that remain, you are what makes it EVATONE! You all are above the sad, self serving remarks. We are all a TEAM, let's do it!

by Blu	Nov 9, 2008 11:11 AM
John:I agree Carl is a good man.I don't know how true the 36mil is when they've been losing some big accounts left and right. I just hope he does right by the folks who still work there, whatever the outcome is.

by Janey	Nov 9, 2008 11:10 AM
LOL "Obama made it, so can Carl". Have you any clue what you just compared? The company can only keep bottom of the barrel from leaving.

by Howard

Nov 7, 2008 8:26 PM

I worked there for almost 14 years and enjoyed the company and it employees. However, we (technicians) always felt the company was, metaphorically speaking, like a child riding in the back of the family station-wagon?always looking out the rear window at what has passed, seeing it as something new. In the beginning perhaps they were pioneering but they still pressed out sound sheets until Y2K and were way too slow to get into CD?s and DVD?s. Even then it was not until after the market was booming. Now they still hang on to the CD as it too becomes a pet dinosaur as consumers find new innovative ways to listen to or watch movies. I?ve been there and I?ve seen them try new things but it was always too wishful, too little, too late.

by mp	Nov 7, 2008 8:17 PM
Hey this company is amazing. They are in the forefront in technology. They are out there trying to protect their clients interest. No matter what, they are a big influence in the Duplication marketplace. THEY WILL MAKE IT if we will let them.

by Faith	Nov 7, 2008 12:31 PM
Carl is filing for Bankruptcy/Reorg give him a chance, he still employs many hard working people, one being my husband and he has faith that the company can be saved with the right employees! Obama made it, so can Carl!

by janey	Nov 7, 2008 12:25 PM
I worked there some time ago. What a bunch of tools.

by eddie sjoberg	Nov 7, 2008 12:20 PM
they fired/layoff all the good employees, and kept the ones who have brown noses and don't know much. SAD. good luck finding jobs guys!!!

by ROBERT	Nov 7, 2008 12:17 PM
I BEEN WITH THE COMPANY FOR 13 PLUS YEARS.I PLAN ON STAYING WITH THE COMPANY, AND I`AM GOING TO GIVE 100 PERCENT TO MAKE IT WORK.

by Icared	Nov 7, 2008 11:59 AM
The co. was & is made up with many fine individuals. The problems they face today started long ago. They were a victim of their early success. Critical managerial & financial tools were never put in place to effectively manage the bus long b4 Carl

by Said	Nov 6, 2008 5:45 PM
Story of what?

by Maria	Nov 6, 2008 12:24 PM
I see a lot of assuming. Hey James get you facts straight.

by john	Nov 6, 2008 11:56 AM
To Blu: Carl is a man of integrity and high values and excuse me, $36 mill in annual sales is not small potatoes for the tampa bay market.

by Fat Lady	Nov 6, 2008 11:54 AM
It's not over 'til the Fat Lady sings. I have no doubt Evatone will emerge victorious. My business has been handled flawlessly. Not to be judgemental, but to some commentees, "Did you pay attention in class?" Your grammar/spelling is atrocious.

by Blu	Nov 5, 2008 7:11 PM
Unfortunately this was inevitable. Everyone could see it once Carl took over. Lots of dead wood there adding up to 1000's a week in unearned paychecks,and never wanting to step out of their "G" rated box to make some serious money.

by john	Nov 5, 2008 6:28 PM
My son worked for Evatone as part of a contract with Mcgraw Hill. When they were taken over last year by a company located in India, he left Evatone. We worried about his future but I guess it worked out better for him.

by tim	Nov 5, 2008 5:36 PM
You mean I won't be able to play my vinyl records on my Victrola anymore? What's this thing called enter-net?

by James	Nov 5, 2008 5:35 PM
I used to work for Evatone and quickly found out it was a "family" business. I hate to see others lose their jobs. Perhaps the "family" was living a little too high off the assets instead of keeping up with the bills. Nice company. What a shame.

by Keith	Nov 5, 2008 5:30 PM
I worked there for two years,anyone with a brain could see this coming. but you have to feel bad for their employee's.

by Lori	Nov 5, 2008 11:55 AM
I worked for Eva-Tone before and after they moved to Florida - they were good to their employees and a great company to work for, I wish nothing but the best for them and will keep all in my prayers.

by John	Nov 5, 2008 11:55 AM
Every company has some level of problems. There are a lot of good people working at this company so I hope they pull through this mess. Maybe the county and local governments should treat the major employers better than they have recently!

by LBRguy	Nov 5, 2008 7:18 AM
The company is still located in Clearwater. However, the Fulfillment operation moved to North Carolina. There was an attempt to move the optical disc business to Nashville through a purchase of another company, but that never materialized.

by Arturo	Nov 4, 2008 10:18 PM
Jeff Harrington writes that the company is located in Clearwater. Did not Evatone leave Largo because the city had annexed the company's property? I thought that the company had moved north. Clarification please.

by 4Video	Nov 4, 2008 10:07 PM
Eva-Tone has NEVER been competitive on price. Last year tons o money went to Disc Makers, CDXDVD and a print house down in Miami. Shame - could of stayed local. But I was told" We don't care" when suggesting they were not competitive on price.

by Saddened	Nov 4, 2008 6:56 PM
Some of you are missing the point. It's not a good thing happening to a bad company. It's a company struggling and that's bad because it's the livelihood for many families. If the company goes under, more foreclosures will follow. That's sad.

by Karl	Nov 4, 2008 5:24 PM
My brother worked there and called it "evil-tone".

by jo	Nov 4, 2008 4:33 PM
how sad that the economy and perhaps a bad judgement call has put the company and its employees in this position.

by scott	Nov 4, 2008 2:57 PM
Wow that's hard to understand,I thought they had all the answers and were smater than everyone else,They did'nt believe in doing business locally to all the out of town venders,good luck

by Shengzhiou China	Nov 4, 2008 2:08 PM
I'm sure a Chinese or India company will be more than happy to accommodate Eva-Tone's clients.

by Larry	Nov 4, 2008 1:43 PM
Okay, okay...it's "Eva-Tone".

by Larry	Nov 4, 2008 1:42 PM
Evatone was a supplier of products for another local company at which I'd worked. I had direct dealings with Evatone's staff, from production workers to front office, and they were never less than accomodating and helpful. This is a real shame.

by Hello	Nov 4, 2008 1:41 PM
ok so they did not give you a job and now your not working for a place that is bankrupt. Your mad WHY

by Jimmy	Nov 4, 2008 1:33 PM
It is a shame to see this company go under as they pioneered many inovations, including the flexible records you used to get in cereal boxes... May God see us all through the current economic crisis, so that we can emerge as stronger people.

by spurned	Nov 4, 2008 1:24 PM
LOL couldnt have happened to a "nicer" company - they jerked me around about a job opportunity a few years ago. Oh well.