What next for TOPS?

摘要

Print and OP group LSC Communications in April voluntarily filed for business reorganisation under Chapter 11 of the US Bankruptcy Code. The company -which includes the TOPS office products supplier business - said it had made the decision following a "comprehensive evaluation" to reduce its $972 million in debt and create a "more sustainable capital structure".The move is not a great surprise: in March, LSC had said it was "actively evaluating opportunities to de-lever its capital structure". However, the firm admitted it had accelerated the timing of the Chapter 11 filing due to the COVID-19 situation. While LSC's core publishing and print operations have seen sales and profits slide, TOPS has shown itself to be somewhat more resilient. In Q1 2020, its organic sales were down just 5.5% year on year to $112 million, while adjusted EBITDA rose by 9% to $12 million.