The Stationers Guild

In what promises to be a fascinating story, a significantly downsized Swoozies appears to be emerging from bankruptcy and liquidation.  According to the Atlanta Business Chronicle, Gart Capital, a private equity firm headquartered in Denver, Colorado has formed a new company with the former co-founder of Swoozies, Kelly Plank-Dworkin, to re-open eight stores in the southeast and their online store.

The Atlanta-based Swoozies filed for Chapter 11 bankruptcy on March 3 and closed 43 stores in 15 states.  The abrupt closure of Swoozies left many suppliers holding significant claims against the company which have now largely been written-off.    It is difficult to see what Gart Capital and Kelly Plank-Dworkin intend to do with the company since Swoozies stiffed so many creditors and its business model doesn’t seem to have legs.  Furthermore, the Internet is already crowded with online resellers and it is difficult to see how the Swoozies name will carry much weight in cyberspace.

Time will tell, but it is certainly a story worth following.

In yet another sign of the times, Cross My Heart cards and stationery has decided to close its doors after 20 years of business effective April 5.  In an email announcement to close business associates, owner Rosanne Beck cites “the struggling economy, the digital revolution and the failure of some of our larger customers have made it impossible for us to continue under our current business model.”   One of their “larger” customers was Swoozies which filed for bankruptcy earlier this month.  

According to the announcement, the last shipping date was April 2 and all “booked” orders received after April 5, 2010 are “officially” cancelled.   Cross My Heart operates under several different brands or styles; but the communique indicates that the following divisions/brands are closed for business:   CROSS MY HEART -Hand-Painted Division;  CMH DIGITAL – Classic. Modern. Haute.

Printed Write!  will reopen for business on April 14, 2010 (Editor’s note, I believe this is now the correct website address).  Those who wish further information are advised to contact Printed Write at the contact information provided below:

New Mailing Address:
6611 Hillcrest Avenue, #304
Dallas, Texas 75205
Same Phone/Fax Numbers:

Phone: 214-363-3799
Toll Free: 800-445-5582
Fax: 214-750-7022

Editors Comment:    I hardly know what to say anymore.  On behalf of storefront stationers, distributors of Cross My Heart invitations and stationery products and the many fine employees and craftspeople at Cross My Heart that have touched our lives:  We wish you well! 

Please note that there is an online dealer called Printed Write that is based in Brooklyn, NY that operates under the trade name “Celebrate Stationery.”  I had originally reported that Printed Write and Printed Write were one-in-same.  That appears to be a mistake.  Mea culpa and sorry!

As indicated in previous News Posts, the stationery and custom invitation industry is in freefall.   When will the “true” leaders of the stationery industry step up?  As the organizers of the National Stationery Show “tweet” themselves into oblivion, leaders of the fine stationery industry have shown their true stripes:  they are little more than paper tigers.

Richard May
Founding Member Stationers Guild

Swoozie’s, the gift  and stationery store chain, filed for bankruptcy on March 3.   Citing their ill-considered acquisition of 13 Blue Tulip stores in the northeast as a contributing factor to their demise, the Atlanta-based chain reportedly owns 43 stores in 15 states.

The bankruptcy of Swoozie’s is just another example of how venture capitalists have failed to understand the dynamics of the personalized stationery business.   Why Swoozie’s acquired the failed Blue Tulip stores (also in bankruptcy) last year remains a  mystery.  Nevertheless, I suspect that there was some form of finacial chicanery or tax play involved since both companies are owned by private equity firms.   As the financial crisis has taught us all: greedy financial wizardry lasts as long as the merry-go-round continues to go round.  I for one extend my heartfelt sympathy to each and everyone of the 350 Swoozie’s employees who have  lost their job.

The fine stationery industry is in a crisis:  there is simply too much product chasing a finite market.    Companies who seek to extend their distribution channels either physically or digitally will only compound the problem and most will fail.   I don’t have the answer, but what I see happening doesn’t augur well for the future of our industry.  It takes very bold leadership to back the “slow stationery” movement and continue to produce beautiful papers while other others are compromising standards to remain price-competitive.    Frankly, I don’t see much value in chasing the The Taylor companies down the price chain.  They are even beginning to make “Made in China” look good. 

Richard May
Founding Member Stationers Guild