DMC Bankrupt - but DMC USA says business as usual

DMC has responded to all the activity in France with a bulletin in English. This is the same as the one in French linked to yesterday.  The President of DMC Inc sent an email to those in the DMC Mentor program (a group that encourages people to get into Cross Stitching).  It says:

Email

In recent days, there has been a significant amount of information in the form of press releases, media reports, etc. regarding financial difficulties and operational restructuring plans at the DMC corporate offices in France. Those activities and court filings within the legal system in France are directed towards seeking a formal resolution for two divisions within the DMC Corporation (Sportswear fabric and a small chain of retail stores found only in France) that are not related to the embroidery thread and craft activities, which remain the core business of the corporation.

In addition, the U.S. division of DMC operates as a separate legal and financial entity with its own financing, receivables, payables, etc, and as such, is not included in any legal filing or petitions to the courts that may occur in France.

We are financially secure and fully prepared to conduct business as usual here in the U.S.

DMC has been manufacturing needlework threads for 262 years and we remain committed to providing stitchers with the highest quality embroidery floss, specialty threads, needlework fabrics and other supplies they need to continue to enjoy the wonderful art of needlework. We look forward to continuing to serve all of our customers and loyal users of DMC products into the future.

Joseph D. McCabe
President/CEO
DMC, Inc.

You will note that the statement says that DMC USA is just an administration and distribution operation. Production is still in France, of which two major parts of the business are filing for Bankruptcy, with workers who aren't being paid.  We will see how the thread factory part of the business is affected.  If DMC USA has no future product, how does it keep operating long term? 

As we said, interesting times ahead.