The Henrico County-based printing company Colortree Group Inc. has abruptly closed “some or all of its divisions” and laid off 240 employees, according to a notice the company sent to state and local officials.
The company, which has operated for more than 30 years printing direct-mail envelopes, flyers, brochures and other products for the direct-mail industry, filed a federal Worker Adjustment and Retraining Notification Act, or WARN Act, notice informing officials of the job cuts at its plant at 8000 Villa Park Drive.
The notice, sent to the Virginia Employment Commission and the county manager’s office, was dated Monday, but the VEC didn’t receive the notice until Tuesday.
The notice did not give a reason for the closure. It said the job cuts started Monday.
“Many of Colortree’s approximately 240 employees at this worksite will be laid off as a result,” according to the letter, signed by James “Pat” Patterson, Colortree’s president and chief executive officer.
“The anticipated closure of certain Colortree divisions, and resulting layoffs, will be permanent,” the letter said. “Employees will be paid through that date [June 3] regardless if the facility or division in which they work closes sooner.”
Phone and email messages left for Patterson, who also owns the business, on Monday afternoon and Tuesday were not returned.
Doors to the office were locked Monday afternoon and Tuesday morning. The parking lot was empty on Monday afternoon but about a dozen cars were in the parking lot Tuesday morning. No one answered the door.
The notice includes a list of 240 affected jobs, a combination of production, maintenance, administrative and management roles. The management jobs listed include the chief operating officer, the vice president of human resources and the vice president of marketing.
Colortree, founded in 1988, operated in a 73,000-square-foot plant near Bryan Park for about 16 years before moving to a 105,000-square-foot plant on Villa Park Drive, located off East Parham Road near Brook Road.
In a 2008 interview with the Richmond Times-Dispatch, the company’s then-executives said it produced about 1 billion envelopes a year for customers such as businesses and nonprofit organizations that send direct-mail advertising or solicitations.
In 2011, Colortree and Graphics Innovations, a specialty printer of direct-mail products, were acquired by Pat Patterson and Boathouse Capital. The two companies were combined with Patterson as CEO.
Patterson became sole owner of Colortree Group in late 2016 when his Stingem Management Group LLC acquired Boathouse Capital’s 72 percent stake in the company that he didn’t own.
Colortree Group had grown from 185 employees in 2011 to 235 workers in 2016. Its revenue soared from $32 million in 2011 to $60 million in 2016.
The company reported sales of $57 million in 2018, a 4% increase from the previous year of $55 million, according to the trade publication Printing Impressions. Colortree Group was ranked No. 97 in Printing Impressions’ ranking of the top 400 printing companies in the U.S. and Canada.