After yesterday’s post, which was titled –
“Has Service Point Shuttered Its Operations in the U.S.?” – I heard from four
different sources, including one source within Service Point U.S., that the
answer to that question is, “YES”.
“Has Service Point Shuttered Its Operations in the U.S.?” – I heard from four
different sources, including one source within Service Point U.S., that the
answer to that question is, “YES”.
This morning, a person posted a “comment” to
yesterday’s post, and here’s what that comment says:
yesterday’s post, and here’s what that comment says:
“Service Point has completely closed all U.S. operations as of yesterday.
Employees were told at 10:30 via email from Kevin. Customers were given no
notification from the company. Do not expect a response from Kevin. Website (www.servicepointusa.com) is down and
phones including the main number at HQ (781-497-7799) have all been shut off.”
Employees were told at 10:30 via email from Kevin. Customers were given no
notification from the company. Do not expect a response from Kevin. Website (www.servicepointusa.com) is down and
phones including the main number at HQ (781-497-7799) have all been shut off.”
A truly extraordinary turn of events!
….. for we
are talking about an operation that was once one of the reprographics
industry’s high-fliers. Service Point’s
U.S. business, before its name was changed many years ago to Service Point, was
originally known as Charrette ProGraphics.
Charrette was founded (in Boston) by two friends who attended Harvard,
Lionel Spiro and Blair Brown. Originally
established as a reseller of supplies to the A/E/C and arts communities,
Charrette later morphed/expanded into the reprographics services business, and,
in the late 1980’s, established what eventually grew to be one of the reprographics
industry’s largest and most successful FM (OnSite Services) businesses. Most of Charrette’s (Service Point’s) FM
growth came during the time that Mark DiPasquale and Jane Simmons were heading
up Charrette’s/Service Point’s FM business.
[In 2007, Mark and Jane founded Archimedia Solutions Group; ASG is in the
FM/OnSite services business.] Charrette’s/Service Point’s reprographics
business eventually grew to include production center operations in several
market areas in the U.S., primarily in the Eastern U.S. One of those markets was Washington,
D.C. The company acquired Capital
Technigraphics (founders were Jim Early and Ken Wheelock) to enter the D.C.
market. Last year, Service Point
shuttered its D.C. operations. Evidence of things to come?
are talking about an operation that was once one of the reprographics
industry’s high-fliers. Service Point’s
U.S. business, before its name was changed many years ago to Service Point, was
originally known as Charrette ProGraphics.
Charrette was founded (in Boston) by two friends who attended Harvard,
Lionel Spiro and Blair Brown. Originally
established as a reseller of supplies to the A/E/C and arts communities,
Charrette later morphed/expanded into the reprographics services business, and,
in the late 1980’s, established what eventually grew to be one of the reprographics
industry’s largest and most successful FM (OnSite Services) businesses. Most of Charrette’s (Service Point’s) FM
growth came during the time that Mark DiPasquale and Jane Simmons were heading
up Charrette’s/Service Point’s FM business.
[In 2007, Mark and Jane founded Archimedia Solutions Group; ASG is in the
FM/OnSite services business.] Charrette’s/Service Point’s reprographics
business eventually grew to include production center operations in several
market areas in the U.S., primarily in the Eastern U.S. One of those markets was Washington,
D.C. The company acquired Capital
Technigraphics (founders were Jim Early and Ken Wheelock) to enter the D.C.
market. Last year, Service Point
shuttered its D.C. operations. Evidence of things to come?
After Mark
DiPasquale resigned from the position of President of Service Point US, he was
replaced by Bill Sullivan, an SP team member who worked for SP for
approximately 12 years (in other words, a veteran.) But, later on, on October 20, 2010, Service Point issued
a Press Release to announce a new leader of its U.S. business unit: (from that Press Release…..)
DiPasquale resigned from the position of President of Service Point US, he was
replaced by Bill Sullivan, an SP team member who worked for SP for
approximately 12 years (in other words, a veteran.) But, later on, on October 20, 2010, Service Point issued
a Press Release to announce a new leader of its U.S. business unit: (from that Press Release…..)
“Service Point Solutions, S.A (ticker: SPS.MC)
has appointed Kevin Eyers to run its US business. The US subsidiary accounts
for roughly 9% of the group’s topline, with revenue last year of €20 million.”
has appointed Kevin Eyers to run its US business. The US subsidiary accounts
for roughly 9% of the group’s topline, with revenue last year of €20 million.”
“According to Joan Carles Peiro, COO of Service Point Solutions, “With
this appointment, Service Point is vouching strongly for its US subsidiary.
Kevin has a tremendous track record in the world of document management within
the financial arena. Judging by his successes in the past, he is bound to build
SPS US into a benchmark player in the American market”.”
this appointment, Service Point is vouching strongly for its US subsidiary.
Kevin has a tremendous track record in the world of document management within
the financial arena. Judging by his successes in the past, he is bound to build
SPS US into a benchmark player in the American market”.”
I previously reported on Reprographics
101 that SP USA’s sales were in the neighborhood of $43 million (USD) (around €32.7 million based on the 2007 EUR/USD
exchange rate) at the time Mark DiPasquale resigned.
101 that SP USA’s sales were in the neighborhood of $43 million (USD) (around €32.7 million based on the 2007 EUR/USD
exchange rate) at the time Mark DiPasquale resigned.
The Press Release SP issued in
October 2010 indicated that SP USA’s sales were €20 million.
(That’s when Kevin took over management of SP USA.)
October 2010 indicated that SP USA’s sales were €20 million.
(That’s when Kevin took over management of SP USA.)
In an Investor Presentation
document that SP released in June 2013, SP stated that SP USA’s 2012 revenues
were €15.9 million.
document that SP released in June 2013, SP stated that SP USA’s 2012 revenues
were €15.9 million.
The saddest thing about SP’s decision to
shutter operation in the U.S. – it is likely that some 150 people have lost
their jobs.
shutter operation in the U.S. – it is likely that some 150 people have lost
their jobs.
At this point – not having yet received any
replies to my e-mail inquiry to SP’s
headquarters in Barcelona, Spain, one can only wonder: a) why SP made the decision to shut down its
U.S. operations, b) what’s going to happen to the rest of SP? [SP operates a very large business in the
U.K. and has significant operations in Western Europe. Among them, SP owns the largest reprographics
business in Norway and has a significant operation in Sweden. (SP previously
exited from the reprographics business in France)], and c) why in the world
would anyone, in this case, SP, shutter an operation that could have been sold?
replies to my e-mail inquiry to SP’s
headquarters in Barcelona, Spain, one can only wonder: a) why SP made the decision to shut down its
U.S. operations, b) what’s going to happen to the rest of SP? [SP operates a very large business in the
U.K. and has significant operations in Western Europe. Among them, SP owns the largest reprographics
business in Norway and has a significant operation in Sweden. (SP previously
exited from the reprographics business in France)], and c) why in the world
would anyone, in this case, SP, shutter an operation that could have been sold?
I previously
reported on the blog that SP (per Reuters.com) filed “for protection from
creditors”; SP took that step because its lenders failed to agree to SP’s proposal
to refinance SP’s debt. I also
previously reported that SP recently brought in a new CEO (September 2013) and
that two of its directors resigned. It
could well be that SP’s lenders shut off SP’s cash spigot. If that’s what happened and if that’s why SP
shut down its US operations, that would be a fantastic example of “shooting
oneself in the foot.” Why would any
lender (or lending group) take an action that would reduce to zero the value of
something worth in the millions?
reported on the blog that SP (per Reuters.com) filed “for protection from
creditors”; SP took that step because its lenders failed to agree to SP’s proposal
to refinance SP’s debt. I also
previously reported that SP recently brought in a new CEO (September 2013) and
that two of its directors resigned. It
could well be that SP’s lenders shut off SP’s cash spigot. If that’s what happened and if that’s why SP
shut down its US operations, that would be a fantastic example of “shooting
oneself in the foot.” Why would any
lender (or lending group) take an action that would reduce to zero the value of
something worth in the millions?
Anyway, as I said, a truly extraordinary turn
of events. A once major high-flying
company (SP USA), one of the top 10 reprographics enterprises in the U.S., down
for the count.
of events. A once major high-flying
company (SP USA), one of the top 10 reprographics enterprises in the U.S., down
for the count.
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If anyone
out there can provide further details, please contact me at joel.salus@mac.com. Thank you.
out there can provide further details, please contact me at joel.salus@mac.com. Thank you.
Reprographics 101 