Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NILES, IL-HALO Industries, Inc. is leaving its 267,344-sf state-of-the-art office building at 5800 W. Touhy Ave. as part of an effort aimed at slashing $20 million in annual expenses. The promotional products distributor, which has filed for Chapter 11 bankruptcy reorganization in the wake of a $300-million writeoff of a failed Internet venture, has been involved in talks with building owner and developer CenterPoint Properties Trust involving restructuring its $6-million-a-year lease.

CenterPoint officials earlier this summer said they believed Halo would remain in its facility, which was first occupied by HALO in April, through November. However, company officials instead Monday announced management and support functions would be relocated to Sterling, IL, where HALO has a subsidiary. Not all managers and their support staff will relocate to Sterling, however. Most of their jobs are being eliminated. Meanwhile, the sales department and Events by HALO division will move to nearby Skokie while data processing will be done out of west suburban Oak Brook.

The moves will begin next week and are expected to be completed by March.

“Since filing for Chapter 11 protection, we have made solid progress, but we realize that more is needed to return our Company to profitability,” says HALO President and CEO Marc Simon. “In light of the difficult economic conditions we’re all facing, this operational restructuring is necessary for us to emerge from Chapter 11.”

Negotiations on restructuring the lease have been ongoing since April, when HALO moved into the new facility. If HALO decides to reject the lease, it could affect CenterPoint’s net operating income by $2.2 million.

“Our actions to date are projected to have reduced a massive annual cash loss to a comparatively small annual cash deficit,” Simon says. “But unless HALO is earning a profit, it is not positioned to emerge from Chapter 11. We project our new action plan will result in a modest annual cash flow profit.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.