American Greetings is navigating a multiyear decline in industrywide greeting-card sales as more well-wishers express sentiments in email, Facebook and other means of social interaction.
"You always get the question, will the greeting-card industry hold up with all the electronic stuff coming out?" said Kevin Cassidy, senior credit officer at Moody's Investors Service. "This is a very mature business. You can try to take some share. You come up with some new avenues, some price increases."
American Greetings also has a small operation selling e-cards and other digital offerings, but its business selling traditional products in North America accounts for the vast bulk of its revenue.