Trustee: CPI focusing on customers; has stalking-horse equipment bid

By Jim Witters

Wilmington, Del., May 16 - CPI Corp. has spent the two weeks since filing bankruptcy dealing with more than 100,000 customers seeking information about photographs and photo albums taken by CPI at its 2,700 studios across the country, the Chapter 7 trustee told the court during a May 15 status conference in the U.S. Bankruptcy Court for the District of Delaware.

The company, which operated photo studios in Walmart, Sears and Babies R Us stores, hopes to provide finished products to as many customers as possible, trustee Charles A. Stanziale, Jr. said.

The three retailers have been distributing photos and albums or refunding customers' money, he said.

Two companies are working with the trustee to handle fulfillment of orders.

Meanwhile, Stanziale said he has a stalking-horse bidder for all of the company's photographic equipment, which is being brought together in St. Louis. He offered no details regarding the offer.

"We hope to use that bid to work up for value for the estate," he said.

Judge Brendan L. Shannon called the status conference after his office and the court clerk's office were flooded with phone calls from CPI customers seeking information about the bankruptcy filing and the status of their photo orders.

Stanziale said CPI has set up a website with information for customers.

CPI, a St. Louis-based portrait studio operator, filed for bankruptcy on May 1. Its Chapter 7 case number is 13-11158.

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