Copy

Good morning. Roundabouts may frustrate drivers at times. But the traffic-control measures also appear to be saving lives after replacing stop signs or traffic lights. PennDOT reported yesterday that crashes, injuries and deaths have fallen overall at 26 roundabouts across the state. The agency's review included three roundabouts in Dauphin County, two in York County and one in Cumberland County.
 
Forward BizNewsPA Forward BizNewsPA

York-born apparel brands sold



Bankruptcy won't be the final curtain for Curtain Call.
  • Weissman's Theatrical Supplies, a St. Louis-based company, is planning to pay $1.4 million for the Curtain Call brand and related assets, including customer lists and website names.
  • The dance-apparel brand had been made by Perform Group, a North York manufacturer that filed for bankruptcy after shutting down in June.
  • The sale was approved this week by a federal bankruptcy court in Harrisburg. It followed an auction process that went for 60 rounds, according to Steven Carr, a York-based attorney who is the trustee in Perform Group's bankruptcy case.
  • Another buyer had initially proposed paying $250,000 for the Curtain Call brand.
  • "It's not Halley's Comet rare but it's not the norm either," Carr said of the competitive auction process. The auction was conducted by SC&H Group, a Maryland-based consulting and advisory firm.
  • Weissman's declined to comment.

Are there other assets: Yes. The court approved sales of vehicles, supplies and another of the Perform Group brands: Alpha Factor, which is for gymnasts.
  • Cincinnati Industrial Auctioneers is paying $37,500 for eight vehicles, including a 2001 Honda CRV and a 2014 Dodge Caravan SE, according to court filings.
  • It's Greek to Me, an apparel company in Kansas, is paying $52,000 for the Alpha Factor brand, according to court filings
  • Reading-based Elite Sportswear is paying $55,340 for Alpha Factor inventory, thread and other materials.

What happens to the proceeds: Most of the money is going to Perform Group's secured creditor, York County-based PeoplesBank, a subsidiary of Codorus Valley Bancorp, Carr said. The bank is owed about $7.2 million, according to court filings.
  • Larry J. Miller, president, chairman and CEO of Codorus Valley, declined to comment. But in court filings, the bank had argued for seeking a better offer than the initial $250,000 bid for Curtain Call.
  • $88,500 is going to unsecured creditors, Carr said.

Why is this happening: Perform Group closed and filed for Chapter 7 bankruptcy, or liquidation, in early June after taking a sales hit during the pandemic. The company's customers include dance schools, which were largely shut down in most of 2020 and early 2021.
  • In its bankruptcy filing, Perform Group said it had sales of $6.9 million in the fiscal year that began July 1, 2020, down from $30.5 million for the previous year.

What's next: The sales still have to close, said Carr, who was confident they would.
  • Carr, a partner at Ream Carr Markey Woloshin & Hunter, also is pursuing other assets that might help pay off Perform Group's debt.
  • The manufacturer had an ownership stake in one or two additional entities, Carr said, declining to describe them.
  • "There's likely to be a recovery there, although that recovery will go to the bank," he said. 
  • Perform Group's two factories, which are up for sale, are not part of the bankruptcy, Carr said. They are being sold separately.

SPONSORED BY WAKEEN NARRATIVES


Conflict in and of itself is not bad. In fact, if conflict is not present within your team, you aren’t getting the best of them.
  • Healthy conflict spurs innovation. However unresolved conflict will fester and eventually destroy productivity.
When you see tension rising within your team, take time to ascertain if greater innovation is taking place or if productivity is being thrown out the window.
 


Quick takes



WHO'S BUYING: Cresco Labs. The Chicago-based company is planning to pay $90 million for three medical marijuana dispensaries in Pennsylvania, including one in Lancaster County. The deal is expected to close in the fourth quarter,. 
  • Cresco is buying the three dispensaries from Bay LLC, which does business as Cure Pennsylvania or Cure Penn.
  • The Lancaster County dispensary is at 1866 Fruitville Pike in Manheim Township. The others are in Phoenixville and Philadelphia.
  • A Cresco spokesperson declined to share revenue for the dispensaries, which employ more than 60 people. But he said their sales are above the market average. They will eventually be rebranded to Sunnyside.
  • Cresco already operates four dispensaries in western and southeastern Pennsylvania under the Sunnyside brand. The Cure Penn dispensaries will eventually be rebranded according to the Cresco spokesperson.

The background: Cresco grows, processes and sells marijuana in about 10 states, including Maryland, Pennsylvania and New York. Although it is based in Chicago, the company trades on the Canadian stock exchange, where shares of many U.S. cannabis companies have found a market.
  • Cresco had sales of $388.4 million in the first half of 2021, up from $160.6 million in the first half of 2020, according to securities filings in Canada.
  • The company had a net loss of $21.5 million in the first six months of this year, down from a net loss of $77.2 million for the same period in 2020.
  • For the second quarter of this year, the company eked out a net gain of $2.7 million.
 


WHO'S HIRING: F&M Trust. The Chambersburg-based bank has named Laura Potthoff as a business development officer for the capital region. Potthoff worked most recently as director of business and workforce development for the Cumberland Area Economic Development Corp.
  • Potthoff (below left) will be based in F&M Trust's Mechanicsburg office and help look for new retail, commercial and investment customers.
  • The bank also has hired a new business lender for its Harrisburg office. Leahmond Tyre Jr. (below right) worked previously as a branch manager for Members 1st Federal Credit Union

The background: F&M Trust is the banking subsidiary of Franklin Financial Services, which has assets of $1.6 billion and 21 branches in Cumberland, Franklin, Fulton and Huntingdon counties.

 




WHO'S RETIRING: David Cathell, who has been CFO for ACNB Corp. since 2007. Cathell is planning to retire as of May 31, according to a press release from the Gettysburg-based bank holding company. Cathell, 67, also will be stepping down as CFO of subsidiaries ACNB Bank and Russell Insurance Group
  • To look for a replacement, the bank has hired Kaplan Partners, an executive search firm based in Philadelphia.
  • ACNB has assets of $2.7 billion and 20 branches in Central Pennsylvania and northern Maryland.
Subscribe


Got questions? Got feedback? Interested in supporting BizNewsPA?
Contact us at BizNewsPA@gmail.com
Compiled and written by Joel Berg

 
Copyright © 2021 BizNewsPA, All rights reserved.


Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.

Email Marketing Powered by Mailchimp