According to a press release from Calexico Tissue's parent company, embattled American Tissue Corp. of New York, will focus on consumer and food service product lines as it works to return to profitability.
The new company spokesman, Ken Schwenk, said, "By adopting this strategy, American Tissue will optimize the utilization of its facilities and personnel on its traditional customer base and lower its costs."
American Tissue filed for Chapter 11 protection Sept. 10.
Restructuring specialists from Chicago are in charge of turning around the embattled corporation.
One of the partners at the Chicago firm of Brent Kugman and Associates said he was optimistic about the future of the Calexico plant but he couldn't guarantee it would reopen.
Meanwhile a number of former employees of American Tissue Corp. have landed with a company called American Paper Corp. Both American Tissue and American Paper are based in Hauppage, N.Y.
The former spokesman for American Tissue, Kurt Goldschmidt, has signed on to write press releases for American Paper. On Jan. 8, Goldschmidt touted the arrival of the former sales manager and sales staff of American Tissue to American Paper .
Goldschmidt said American Paper is not affiliated with American Tissue.
Calexicans may remember Goldschmidt from his time with American Tissue. He appeared before the city's Redevelopment Agency board to ask for hundreds of thousands of dollars to expand Calexico Tissue's manufacturing plant.
More than $300,000 in RDA funds loaned to Calexico Tissue has not been repaid, according to city officials.
At the time of its bankruptcy filing, American Tissue owed millions of dollars to various city governments, former business partners and La Salle Bank of Chicago.
>> Staff Writer Aaron Claverie can be reached at 337-3419 or email@example.com.