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COMPUCHECK, INC. ANNOUNCES RESTRUCTURING

 SOUTHFIELD, Mich., April 12 /PRNewswire/ -- CompuCheck, Inc., a Southfield-based check guarantee firm, announced today a restructuring designed to financially strengthen the corporation and provide a foundation upon which to improve the company's future performance. The announcement was made by Connie C. Armstrong Jr., who took over as CompuCheck's chairman and chief executive officer last October.
 The company said the restructuring involved canceling historically unprofitable contracts with 35 companies that had annually guaranteed about $120 million worth of checks with CompuCheck. The terminated clients, which have about 400 stores or 23 percent of CompuCheck's service locations, were notified of the action last week. CompuCheck will continue to serve 375 companies with about 1,300 stores nationwide. Those firms annually guarantee more than $250 million worth of checks.
 The company also said it would close the agency portion of its collections subsidiary, Comp-U-Check Collections, Inc., which has been an unprofitable part of its operations.
 As a result of the restructuring and realignment of its account base, the company said it would lay off 45 of its 105 employees.
 The restructuring came after a six-month review of CompuCheck by its new management team. The study focused on ways to streamline the company's operations, and implement new growth strategies aimed at increasing the size and amounts of checks the company guarantees, and acquiring assets that strengthen and broaden the firm's financial position.
 CompuCheck said it will now concentrate on delivering the highest quality service to its customers and on launching an aggressive marketing program to implement its new growth strategies.
 -0- 4/12/93
 /CONTACT: Lowell Duncan of Hartenstein Communications, Inc., for CompuCheck, Inc., 313-827-4300/
 (CMUC)


CO: CompuCheck, Inc. ST: Michigan IN: FIN SU: RCN

KE -- DE006 -- 0503 04/12/93 11:16 EDT
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Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Apr 12, 1993
Words:290
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