TallyGenicom Announces Chapter 11 Filing

TallyGenicom, a leading global provider of quality printing solutions, has filed a voluntary petition for protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. 

The Companys filing was instituted in order to effectuate the sale of certain U.S.-based assets of TallyGenicom.  As part of its filing, TallyGenicom will be seeking Court approval to name Printronix Inc., a leading developer, manufacturer and provider of industrial and back-office printing solutions as the lead bidder in the auction process.

The economic recession in the U.S. and global downturn along with tight credit markets worldwide has had a serious impact on TallyGenicom and on many of our customers which in turn affects their purchase of equipment such as ours, said TallyGenicoms CEO, Dan Adragna.  After working with our advisors, investors and lenders to explore a number of alternatives, we have made the strategic decision to pursue a Chapter 11 filing in order to effectuate a sale of certain of the Companys U.S.-based assets.

The sale of U.S. assets of TallyGenicom pursuant to Chapter 11 is expected to take approximately 45 days.  In conjunction with the filing, TallyGenicom has obtained financing to help enable the Company to meet its obligations to employees and suppliers during this period.

TallyGenicom has a more than 50-year history of developing, producing and delivering innovative, reliable products and providing exceptional service, added Mr. Adragna.  This is a tribute to the hard work of our employees and the loyalty of our customers and vendors.  We are hopeful that many of these relationships will continue with Printronix, should they prevail in the auction process. 

Printronix respects TallyGenicom as a competitor and recognizes its printer technologies complement our product portfolio, said Printronix, CEO, Robert A. Kleist. Should we gain approval to acquire these TallyGenicom assets, we will welcome the opportunity to offer a synergistic product portfolio to supply-chain printing customers worldwide.

The filing of Chapter 11 does not affect any of the TallyGenicom companies in EMEA regions. However, despite our efforts we were unable to find a purchaser for TallyGenicoms operations outside of the United States and we will be instituting insolvency proceedings in accordance with local laws, added Adragna.

The management of TallyGenicom Europe will be exploring options with the administrators to take the business forward in EMEA in the future.

About TallyGenicom

TallyGenicom is one of the largest companies in the world focused exclusively on providing printers, printer supplies and printer parts and service, as well as a complete line of compatible toner, inkjet and ribbons for use with other popular product brands. TallyGenicom printers are designed and manufactured to perform critical, business-specific printing tasks in industries such as healthcare, transportation, manufacturing, warehousing and retail.

TallyGenicom Worldwide Headquarters are in the United States in Chantilly, VA near Washington, D.C. Elsewhere in the Americas, TallyGenicom maintains facilities in Renton, WA; Waynesboro, VA; McAllen, TX; and Reynosa, Mexico. Its EMEA sales, marketing and finance HQ is in Basingstoke, UK with logistics centered in Ulm, Germany. Other key offices are located in Paris, Vienna, Milan and Singapore. The company does business as TallyGenicom in the Americas and markets its products there under the TallyGenicom brands.

About Printronix Inc.

Since 1974, Printronix Inc. has created innovative printing solutions for the industrial marketplace and supply chain. The company is the worldwide market leader in enterprise solutions for line matrix printing and has earned an outstanding reputation for its high-performance thermal bar code and fanfold laser printing solutions. Printronix also has become an established leader in pioneering technologies, including radio frequency identification (RFID) printing, bar code compliance and networked printer management. Printronix is headquartered in Irvine, Calif.