Double-dipping at the Bankruptcy Bar (Commentary on National Envelope's Chapter 11)

Well, here we go again. As reported in yesterday’s Wall Street Journal, a large printing company files for a second round of bankruptcy protection within a few years. This isn’t the first time that a firm in our business has double-dipped at the bankruptcy bar. This time, it is yet another private equity firm that has found success in our industry elusive. But the Gores Group—which in 2010 “rescued” National Envelope from bankruptcy—probably came out all right in the end. They levered up the company, halted investment and siphoned off cash flows in the form of management fees and executive salaries, as is the case with most of their type. I’m sure they’ll be alright when the dust settles.