HUNTSVILLE, Alabama -- Cinram International, one of the world's largest providers of multimedia products, has reached agreements with newly formed subsidiaries of Najafi Cos. for the sale of substantially all of Cinram's assets and businesses in the United States, Canada, the United Kingdom, France and Germany, the company announced today.

To implement the sale, Cinram filed for reorganization protection in Canada and its U.S. subsidiaries filed under Chapter 15 of the U.S. Bankruptcy Code in the District of Delaware.

"This is a positive event," said Cinram Chairman/CEO Steve Brown. "This will see the company going from a public company to a private company.

"This is great for Huntsville and our employees there."

Cinram employs 1,600 people at a DVD manufacturing plant in Huntsville.

In a statement, Cinram said the filings were made to give effect to the sale of the Company's businesses and assets to Najafi Companies and to preserve Cinram's operations and services to its customers while the sale is finalized.

"Cinram is a market leader in its industries with a long track record of best in class performance," Jahm Najafi, CEO of Najafi, said in a statement. "We look forward to a seamless transition for our customers, and to build on Cinram's significant base of strengths and expertise."

Arizona-based Najafi will purchase substantially all the manufacture of pre-recorded multimedia products and the provision of related logistics services, digital media solutions and outsourced vendor management inventory services in North America and substantially all of the European business, according to the statement.

"We look forward to joining with Najafi Companies," Brown said. "Cinram will continue its focus on strengthening its competitive position in the market with a much stronger financial footing."

In a post to employees on its website, Cinram said:

"We want to thank each and every one of our employees for the enduring commitment and dedication you have demonstrated over the past years to this Company. Please be assured your Board and management team have given this decision careful and deliberate consideration in the best interests of the Company, its employees, customers and suppliers. We appreciate your assistance and patience during this process.

"This is yet another exciting move forward for Cinram and we have taken measures to ensure that the relevant details are available to all employees. Please refer to your facility postings or feel free to consult your local management staff should you have any questions or concerns."

The transaction is expected to close by early August.