Pryor Resources Inc., a business seminar company that markets largely by direct mail, filed for Chapter 11 bankruptcy protection yesterday after terminating a substantial percentage of its staff last week.
The company cited several "complex issues" as the reason for the filing including the state of the economy. This has caused an overall decline in training budgets, slower than anticipated adoption of the company’s eLearning training tools and the effect of increased postal rates on the business.
Company spokespersons refused to discuss the size of the staff or the number of employees laid off, although newspaper reports put the number at 50%. A message posted recently on a board set up for terminated speakers stated that more than 200 employees were notified that they had been laid off during a meeting July 19. When contacted by e-mail, one terminated employee speculated that there were only 20 full-time people left at the company.
Through a spokesperson, CEO Lauren Wright declined to comment. The company said that it is continuing to hold seminars and is looking at all options available to rebuild its business.
The company filed for bankruptcy protection in the U.S. Bankruptcy Court in Wilmington, DE.
Through its massive mailings to bring in seminar attendees, Pryor Resources has accumulated millions of names on the list rental market including the Fred Pryor U.S. masterfile of about 1.7 million; CareerTrack’s U.S. masterfile of 1 million and the Fred Pryor Canadian file of 46, 500.
The files remain on the market, however their long-term disposition is unclear.
"We are waiting to hear how to proceed," said Greg Grdodian, vice president of list management at Edith Roman Associates Inc., which manages the Fred Pryor and CareerTrack masterfiles.
Pryor Resources is also defending itself against a lawsuit filed by an investor group against former owners Fred Pryor, Philip R. Love and Michael B. Hays. The Washington, DC-based venture capital group Thayer/Patricof Education Holdings, purchased Pryor Resources for more than $80 million in 1999. In May it injected an additional $18 million into the company to expand its line of business training products and services.
The lawsuit alleges that Pryor, Love and Hays overstated the value of the company, and seeks to recover the proceeds of the sales.
Earlier this month, Pryor, Love and Hays sued Thayer/Patricof alleging that the buyers suffered business losses through their own actions.
