Pres Release from Ilford

[steve simmons]

sent to View Camera and CameraArts

ILFORD IMAGING USA INC OPEN FOR BUSINESS AS ILFORD RESTRUCTURES BUSINESS WORLDWIDE Paramus, NJ (August 25, 2004)-- The accounting firm Grant Thornton announced Monday the appointment of partners Mark Byers, Malcolm Shierson and Les Ross as joint administrators of our UK parent company Ilford Imaging Limited and joint administrative receivers of our UK affiliate Ilford Imaging UK Limited. The announcement pertains to those two UK companies alone. The Swiss business, including the ILFORD production facility in Marly, is solvent and continues to conduct business as usual. Similarly, Ilford Imaging USA Inc continues to do business as normal. "The US entity is operating in a business-as-usual fashion, and is continuing to accept and deliver on its orders as we evaluate how the changes at the UK companies might affect us", said Ward Phillips, President of ILFORD Imaging USA Inc. "We are taking every action and precaution to maintain ongoing operations with our customers. At the same time, behind the scenes, we will be working with our related companies in the ILFORD group to improve its performance and strengthen the outlook for the future", Phillips further stated. The ILFORD group was founded in 1879 in the UK, and more recently it has developed into the world’s leading supplier of dyes for inkjet photo printers and is the second largest manufacturer of inkjet photo paper. ###

[Jim Galli]

Thanks Steve. That is helpful....and encouraging.

[Capocheny]

Great news Steve... thanks for sharing the release.

Cheers

[David Luttmann]

Thanks for the great news Steve. I hope for the best. As well, thanks for another great issue of VC.

[Andre Noble]

Could someone knowledgeable briefly translate the first part of that?

[Annie M.]

Andre, It is in receivership.... on the block and up for sale..... http://news.bbc.co.uk/1/hi/business/3595978.stm

[Dean Lastoria]

I liked the press release better than the translation. I guess I'll sell my gear and take up alcoholism. Agfa, Kodak iffy, and now Ilford. Dean

[Ellis Vener]

Similarly, Ilford Imaging USA Inc continues to do business as normal. "The US entity is operating in a business-as-usual fashion, and is continuing to accept and deliver on its orders as we evaluate how the changes at the UK companies might affect us", said Ward Phillips, President of ILFORD Imaging USA Inc.

Or put another way, ILFORD Imaging USA Inc.will sell Ilford film until it stops being made by Ilford Imaging UK Limited and shipped to them.

Don't kid yourself, this is sad news any way you read it.

[Ralph Barker]

André - receivership is a form of bankruptcy in which a company can avoid liquidation by reorganizing with the help of a court-appointed trustee. An outright sale of the company is one of the options, but, as I understand, receiverships are supposed to be more flexible than other forms of bankruptcy.

"Ilford" is composed of several corporate entities: the parent company, Ilford Imaging Limited; then, the film-related manufacturing and UK marketing unit, Ilford Imaging UK Limited; the U.S. marketing and distribution unit, ILFORD Imaging USA Inc.; and the Swiss operation, where the digital products are handled. The receivership, according to this press release, affects only the two UK corporations.

[Mike Troxell]

>I liked the press release better than the translation. I guess I'll sell my gear and take up alcoholism. Agfa, Kodak iffy, and now Ilford. Dean

This type of thing is why I stopped using Kodak and moved to J&C. Uh, the receivership part is why I made the move, not the alcoholism part :)

[Leslie D Wall]

Outlets like J&C and Freestyle are a great place to buy film at a very reasonable price, but lets not forget they don't make it. People like Ilford, Agfa and others do. If the big boys go away so does the cheap stuff. Go to your locale store and BUY BUY BUY. Let the Big Boys know we still support them.

[David Karp]

Its true that someone has to make the film, but every box of Arista Professional, for example, was made by Ilford, and Ilford is paid for that too. And they don't have to pay for advertising or other promotional costs on on that film. In a sense, if handled properly, the private label brands are a bonus to a company like Ilford. The problem is that the poorly performing dollar hurts these sales as much as it does their own flagship brands.

[mark blackman]

Andre, The press release does not state that the Ilford parent company are in receivership, merely that they have voluntarily appointed administrators - effectively handed over executive power temporarily to Grant Thornton. GT's brief is to look at restructuring options in order to stem losses from the film and wet-paper side of Ilford. It does state that the affiliate Ilford Imaging UK Limited, is in voluntary receivership - but it is not clear whether this is because of indebtedness or not. In a way this is good news, Ilford are acting responsibly to address a clear change in the market, rather than struggling on hoping things will get better.

[Jim_3565]

Receivership, whether voluntary or court ordered, means that the unit entering it is broke (or 'insolvent' as the solicitors would say it). Nothing more, nothing less. Pretty hard to paint a rosy picture with that palette of colors.

[Robert A. Zeichner]

"Go to your locale store and BUY BUY BUY. Let the Big Boys know we still support them."

This could be a double edged sword. If we were all to stock up on the stuff we liked and filled freezer chests with enough to last us a few years, the initial and artificially higher demand would soon be followed by a sudden precipitous drop in demand. I think our best chances for a stable source of supply might be a steady and more importantly, predicatable demand. That hopefully might help suppliers determine what real business is out there. Pity is the bean counters in the bigger companies just might not feel it's worth their while.

[Nick_3536]

Well on this side of the ocean receivership is often not because the firm is broke but because the firm wants to avoid ending up broke. It gives them a chance to make new deals for debt holders,workers and suppliers. Basically most of the worlds airlines have been broke since before I can remember. They keep coming back from receivership.

[Nick_3536]

"I think our best chances for a stable source of supply might be a steady and more importantly, predicatable demand. "

I mentioned something on the Ilford website. The problem with small volume products is they tie up cash in inventory. Worse with a limited shelf life you get to watch the stuff go bad if it doesn't sell. I'd be willing to pre-order film. By pre-selling the production run they'd avoid keeping too much inventory on hand. They'd be able to address smaller markets like 220 or any of the less common sheet film sizes. It transfers the risk of the inventory going bad to us the consumers but I bet most of us already have film in the fridge now.

It would be best if they had a retailer in each region handle things.

[Bruce Barlow]

One solution is pretty simple. Make more pictures, thereby using more film, chemicals, and paper. If we all promised ourselves to make 25 percent more negatives than we did last year, that might well be significant for folks like the biggies, not to mention for ourselves as photographers!

The only ones likely to help us is...us.

Bruce

[Annie M.]

The film division is 40 Million Pounds in debt........ The receivers are restructuring the UK division in preparation to sell it off to cover the debt...if the film division is not sold they are going to close it. I suspect that even if every member of this forum laid in a life time supply of film it would have little impact on the numbers. At this point it is over unless there is a buyer.... I think I hear the fat lady singing.

[Nick_3536]

They had 40 million in debt prior to receivership. They'll only sell the assets off it provides more money then running the company would. It's fairly normal for debt holders to take pennies [pence?] on the dollar in return for equity stakes. I don't know about the UK but here other stakeholders have rights to.

[Leslie D Wall]

I did not realy mean to buy a life time supply of film now and and then never again. I ment go buy alot for this week and more next week and the week after ect... I like my local stores, I like doing buisness with them. I want to try to keep the open too. Not just film.

[neil poulsen]

Where are Ilford papers made? Is it possible that, while film may have a problem, the papers could still persist? (e.g. Ilford warmtone and regular VC fiber based papers.)

[Martin Reed]

As far as I'm aware, and I've toured their plant, all Ilford traditional (silver) B/W paper is made in the UK. Don't hold out any high hopes for their FB paper - it's minor relative to the RC range, and I don't expect the receiver will take a sentimental stance. If anything, the film is the most likely to be re-established, manufacturing maybe going to the Swiss plant.

[Bob._3483]

With Kentmere just down the road, who knows - they might be pursuaded take over Gallerie if Ilford drop it....

BTW, if anyone's interested: aerial shot of the Ilford factory. (http://www.multimap.com/map/photo.cgi?client=public&X=378244&Y=379955&width=500&height=310&gride=378856.823232296&gridn=379597.237753723&srec=0&coordsys=gb&db=freegaz&pc=&zm=1&scale=10000)

Cheers,

[John U.]

The Paramus location is being closed in a few weeks. This is sales and marketing offices. For sure, the end is upon us. Film will be left ony for hobby makers.

[John Kasaian]

If indeed the worse case scenario plays itself out theres still Kodak, Bergger, Forte, Fuji, and Efke for B&W sheet film and if recent history is any indication, I'll bet the Chinese will probably toss their hat in the ring ("Give them film for my Shen Haos") For FB graded paper there is still AZO (thanks to Michael and Paula) Oriental and Bergger. Perhaps Kentmere will be encouraged to market in the US and Foma might offer more sizes to respond to market demands. We photographers are in a much better lot than the folks who manufacture and market Ilford products. They've given us excellent materials for something like the last 100 years. Before you succomb to pack-rat frenzy stuffing HP-5 in your freezer, you might give them some thought. It would be good if some of the big names in B&W would offer some seriously expensive prints to be auctioned off for the benefit of those workers who supplied them with materials, wouldn't it?

[Bob Salomon]

" For FB graded paper there is still AZO (thanks to Michael and Paula) Oriental and Bergger."

And Tetenal from Germany.

http://www.tetenal.com/f_photo_consumer_sw_swpapier_uk.htm

[John Kasaian]

Mr. Salomon,

Thanks! I'll be sure to check it out.

[Guest_4667]

The UK plant manufactures both Film and Paper. They make Monochrome AND Digital paper. The Swiss factory only makes digital paper (and inks). So - if the Uk plant closes, B&W film and paper will be no more !!

[tim atherton]

So who makes their Ilfochrome paper - where does that fall in the equation?

[Bob._3483]

"ILFOCHROME colour reversal products are manufactured in Switzerland " from: http://www.ilford.com/EuroPAL/PAL/Products/ProdView1.asp?CategoryID=3&Desc1=ILFOCHROME+CLASSIC

Whether that means that they are safe is still anyone's guess at this point...

[Guest_4667]

You are quite right Bob. Ilfochrome paper is manufactured in Switzerland. I'm not sure what the plans are for this product in the future tho'................................. or anything else for that matter!!