Staffing levels will not be known until after a Minnetonka bankruptcy case gets approval from the bankruptcy court judge.
Scicom Data Services could lay off 188 of its workers in the Twin Cities company when it is sold to Taylor Corp. Scicom warned that there would be a mass layoff and that all 118 employees could lose their jobs. Venture Solutions, inc., the subsidiary of Taylor Corp expects to employee some of the employees losing their job, according to a Venture Spokesman.
The spokesman stated that Venture is currently working with Scicom to assess what the needs of the business will be. The intent is to regain as many of those employees as possible, but Venture does not yet know what that number will be. The staffing levels will be known by late September, which is when a Minnesota bankruptcy court judge is expected to approve the deal.
Scicom, which was employee-owned, has reported $13.3 million in assets, but their liabilities equal $17.8 million. This includes a $3.5 million claim in a lawsuit regarding a software license, as well as $13.5 million in pension plan obligations.
Scicom did have $15.5 million in revenue in its last fiscal year, which was down from $24/5 million four years ago. The company lost two large customers and they have been losing money since 2011 and won’t be able to meet litigation or pension liabilities.
The sale to Venture was a must to preserve the going concern value of the business. It was needed to ensure the continuation of its services to its customers and preserve as many of the jobs as possible, according to a spokesman.
If the court approves the deal, Scicom will be selling its assets to Venture and terminate all employment, which Venture would then pick up.
Venture Solutions, based in Arden Hills, offers digital and print communications services to large companies. Scicom has always targeted the statement-processing and employee benefits markets. This means that the capabilities of Scicom and their expertise align well with Venture’s growth strategy.