Arvizu Advertising owes nearly $3M to largest creditors
Phoenix Business Journal – by Chris Casacchia
Arvizu Advertising & Promotions Inc. owes its 20 largest unsecured creditors nearly $3 million, according to court documents filed Friday in U.S. Bankruptcy Court in downtown Phoenix.
The five largest creditors listed in the Chapter 11 bankruptcy filing include KTVW Univision 33 ($1.2 million), KCEC-TV Univision Colorado ($468,761), KDEN Telemundo Denver ($165,524), KUVE-TV in Tucson ($139,191) and KUNS-TV in Seattle ($106,585).
In all, 207 creditors are listed in the company’s filing, including dozens of radio, print and television outlets and numerous Latino media companies. Local creditors include the Arizona Republic, Ryley Carlock & Applewhite PA, Chicanos Por La Causa Tucson, Wells Fargo and US Bank.
Calls to Arvizu attorney Donald W. Powell, of the Phoenix law firm Carmichael & Powell PC, were not immediately returned. Ray Arvizu, who launched the firm in 1991 and is listed as an unsecured creditor, did not immediately respond for comment.
Arvizu Advertising is one of the oldest marketing and pubic relations firms in metro Phoenix, primarily serving the region’s booming Hispanic market and businesses. Its clients have included Basha’s and its sister company Food City, Quest Communications Inc. and McDonald’s. The company has created numerous public service announcements targeting Latinos, and is well known for its philanthropic endeavors in the community.
According to the 2008 Phoenix Business Journal Book of Lists, Arvizu was the largest minority-owned firm in the Phoenix area, generating $113 million of local gross revenue in 2007. Arvizu Advertising, similar to many other marketing firms here, has struggled to keep its book of clients, while others have cut marketing budgets. The industry continues to shrink, as real estate advertising vanished after the housing crash and other economic drivers, such as tourism, flounder in the deepening recession.
Last month, the Business Journal reported that Tempe-based Off Madison Avenue cut four employees, and has trimmed nearly 20 positions since September. In October, the Business Journal reported that R&R Partners in Scottsdale laid off 12 of its 32 staffers.
Numerous marketing positions also were eliminated at Arizona State University as the school undergoes an $88 million budget cut, with furloughs mandated to every staffer.
A meeting with Arvizu creditors is scheduled for July 28 at the U.S. Bankruptcy Court building. Chapter 11 offers a company protection from creditors’ claims while it reorganizes.
Read the latest from the Phoenix Ad blog:
from the biz journal: