This is the text of a letter that Eimicke Associates President Alicia Eimicke sent to many investors after the company filed for bankruptcy protection June 1, 2004
...The following is a letter that V.W. Eimicke Associates President Alicia Eimicke sent to a number of noteholders in early 2002.
...Alicia K. EimickePresident"*Editor's note: Brooks Klimley, husband of Eimicke Associates Vice President Laura Klimley, Alicia Eimicke's sister.
...- Alicia Eimicke, 44
The company, now headed by Alicia Eimicke
, one of Victor Eimicke's daughters, has reported owing more than $27 million to investors.
...In an affidavit, company President Alicia Eimicke said the business was unable to pay its debts "despite its best efforts," which included the sale of its largest business line in late 2003.
Some family members claim they themselves have lost loans totaling over $3 million to the company through trusts and foundations in their names and through personal lending.Two - Victor Eimicke's widow, Maxine Eimicke, and Alicia Eimicke
- have filed for personal bankruptcy.
Daughters Laura and Alicia Eimicke
appeared at debutantes' balls at the Metropolitan Club
, in 1976 and 1979, respectively, marking their formal entry into society.Alicia went on to graduate cum laude from Harvard University.
...Alicia Eimicke served as executive vice president under her father.
After Victor Eimicke's death and Alicia Eimicke's
ascension to president, ownership was divided 50-50 between her and her sister, Laura Klimley.
In January 2002, Alicia Eimicke
maintained that the business was still prospering, according to her
letter sent to investors announcing a new $2 million debenture round offering 15 percent interest.The holiday card business had met sales targets, she
"Our expanded Call Center
, as well as our new Web site (www.eimicke.com) both contributed greatly not only to revenue increases, but profitability increases, as well," her
letter continued, without elaborating.An "aggressive" mailing and telemarketing campaign was planned for the year, she
By the time Alicia Eimicke
sent out her
letter early in 2002 seeking $2 million in loans, the company was already $20.9 million in debt.
In 2003, things got worse.
A subsidiary of The Taylor Corp., a Minnesota-based supplier to Eimicke Associates
, had stopped shipping product to the company because it was owed $1 million, according to an account of what happened that was filed in bankruptcy court by the creditors' committee.By the end of the year, Eimicke
had sold the larger of the company's divisions, its greeting card business, to Taylor for $8 million.
Despite the debt load and the loss of the greeting card business, Eimicke
continued to seek buyers of company debentures in 2004 before the business went to bankruptcy court.
accepted the money.
Six months later, whatever support Eimicke
hoped to have had vanished.The creditors' committee told the bankruptcy court it believed that she
and other members of the family had been running a pyramid scheme to defraud investors.