Deluxe Entertainment, the post-production and effects studio, has named a new CEO as the company emerges from a pre-packaged bankruptcy.
Eric Cummins, who has served as the CFO since June 2018, will take over for John Wallace, who is retiring.
Deluxe filed for bankruptcy on Oct. 3, citing $1.1 billion in debt. In its petition, the company said it had been struggling with technological changes in the industry, which required costly investment while opening the door to competitors.
The company also notified the California Employment Development Department on Sept. 20 that it would be laying off 91 employees, including account managers, engineers and two vice presidents.
Under the terms of the bankruptcy plan, the company’s debtholders now own the company, and the debt has been reduced by 75%. The major stockholders are now Sound Point Capital Management, CION Investment Corp., CIFC Asset Management and Invesco. The company had been owned by MacAndrews & Forbes, Ron Perelman’s holding company, since 2006.
A bankruptcy judge in White Plains, N.Y., approved the reorganization on Oct. 24.
Cummins previously worked at Honeywell for 15 years and was CFO at Harland Financial Solutions before joining Deluxe.
“I couldn’t be more excited to take on this role, and I look forward to carrying on Deluxe’s reputation of delivering for clients as we continue to build a technology platform that enables media and entertainment companies to create and deliver content globally,” Cummins said in a statement.
Gregg Bresner, the president of CION Investment Management, now serves as a member of the Deluxe board of directors.
“With an optimized balance sheet and significantly less debt, Deluxe is well-positioned to carry on its unparalleled legacy, and we are pleased to appoint Eric as CEO,” Bresner said in a statement. “He has been instrumental in completing the comprehensive refinancing, and we are confident that he is the right person to lead the company forward.”