Class Action settlement is the straw that broke the Agfa's back. Agfa USA closes its doors.
AgfaPhoto USA Shuts Down After Class Action Settlement
By Jerry Lansky from imaginginfo.com
With a class action suit against Agfaphoto USA finally settled, the last full-time employee in the U.S., Craig Wetherbee, has essentially turned off the lights for the final time at the company's headquarters office in Ridgefield Park, N.J. The firm ceased full-time operations in January, 2006 after its parent, in the face of a shifting photo market, closed its doors in Europe at the end of 2005 effectively killing off the brand name on these shores for its once-popular film, paper, chemicals and minilab equipment. At one time, as many as 145 people were employed in the U.S.
Not unusual with the shutdown of such a large business, a number of matters had to be resolved. Among them: outstanding receivables, lease agreements, service contracts commitments and legal suits.
Four dealers filed suit against Agfaphoto in August, 2006 and the matter was joined by approximately 400 more and allowed to become a class action. The major complaint, according to Wetherbee, regarded the fulfillment of technical service and support obligations. Wetherbee said the suit was settled on April 18 and the U.S. District Court in Massachusetts awarded a sum of money to the plaintiffs. He said the amount of the settlement was confidential.
The four main plaintiffs were: Doug Vieau, Metro Color Lab, Wyzata, MN; Donald and Troy Bakewell, Camelot Photo, Minneapolis; John Castronovo, Technical Photography, Inc., Fairfield, N.J.; and Paula Carroll, Keaton Color, San Angelo, TX.
With this action resolved, the major outstanding matters in the U.S. were closed, according to Wetherbee. He said that there was still some ongoing litigation in the U.S. involving the collection of lease payments from a few dealers and that he would be serving Agfa on a part-time basis until all suits were finalized.
A European firm, Minilab Factory, purchased from Agfa in Germany, continues production of Agfa chemicals and minilab equipment. In February, 2006, Integra Technologies, Austin, TX, assumed Agfa's outstanding warranty obligations and become the sole provider of service contracts, parts and factory-trained labor for North America. The firm also distributes Agfa chemicals.
Wetherbee last served Agfaphoto as director of marketing and business development and was well known among the major retailers in the country, having served them in the sales of Agfa equipment and consumables as well as Agfa's large private label film program. He worked for Agfa for 22 years, after five years with Copal. His future: "I definitely want to do something within the photo industry."