Map maker Rand McNally files for bankruptcy

| 2/14/2003

Skokie, IL-based map-making company Rand McNally has filed for bankruptcy, the company announced this week.

The 147-year-old company announced in a release Feb. 11 it had filed papers in the U.S. Bankruptcy Court for the Northern District of Illinois for relief under Chapter 11 of the U.S. Bankruptcy Code.

The company had warned Jan. 14 that it would file Chapter 11 if it received approval from its creditors for a plan to recapitalize and reduce its debts. Under the plan, Leonard Green & Partners, a Los Angeles-based private equity firm, will have a controlling interest in Rand McNally. The plan still must be approved by the bankruptcy court, and a hearing is scheduled March 18.

Rand McNally officials said the company’s services would continue as usual.

“The restructuring plan … is designed so that normal business operations continue, with no effect on customers, vendors, operations or employees,” Michael K. Hehir, president and CEO of Rand McNally, said in a statement.

The company has been headed toward acquisition for some time. Reuters news service reported Feb. 13 that Rand McNally had invited bids for the purchase of the company at an earlier date. Those bids were due Sept. 12, 2001, and were delayed after the September 11 attacks.