Workflow One lays off 44 employees, citing post-bankruptcy restructuring

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Marketing products producer Workflow One laid off 44 employees Friday, several weeks after establishing a post-bankruptcy reorganization plan.

“It’s just continuing to move forward with our transformation plan,” Mary Ann Kabel, a Workflow One spokeswoman, said Monday.

In late February, a U.S. bankruptcy court in Norfolk, Va., approved a reorganization plan for the company, which had sought bankruptcy protection to restructure its debt in September 2010. At the time, Dean Truitt, Workflow One president and chief executive, said the company was able to weather six months of bankruptcy without involuntary layoffs or altering salaries or benefits.

Initially, Kabel said she could not give a number for the layoffs, estimating that there were “probably under 40.” Later, she said 44 employees were laid off.

“There are no more on the horizon,” she said when asked if the company planned to release more employees.

A spokesman with the Ohio Department of Job and Family Services said his department had not received a WARN (Worker Adjustment and Retraining Notification) Act notice from Workflow One. In general, a layoff of 50 or more employees in a 30-day period triggers the WARN notice requirement.

“We’re restructuring the company to be more nimble and more profitable,” Kabel said. She declined to say what positions or areas of concentrations were affected by the layoffs, and she declined to share an announcement to employees on the company’s new structure.

Silverpoint Capital is the primary lienholder of the company, Kabel said. She declined to answer other questions about how the company’s ownership structure has changed.

Headquartered on East Monument Avenue in downtown Dayton, Workflow One had about 400 local employees before the layoffs. WF Capital Holdings, part-owner of Workflow Management Inc., which operates through Workflow One, left bankruptcy protection in early March.

While in bankruptcy protection, the company had its debt cut by $149 million and its cash debt service cut by about $50 million yearly.

Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.