As predicted, the bankrupt UK wholesaler EUK has failed to find a quick buyer for what it is basically an unsustainable basis and bankruptcy administrator Deloitte announced today that “700 employees have today been made redundant.” The business will “continue to operate with a reduced workforce of 375 employees” while they try to extract whatever small value they can from the company. “Whilst we will continue to consider offers for the sale of the business as a going concern, we will now focus on realizing value from the company’s assets.” That will likely increase the efforts to sell Bertram’s–which is […]
Finance
Perseus Adds Pay Freeze
Perseus ceo David Steinberger wrote to employees today about “steps we feel we need to take right now” as the company, while “successful, is also being affected by the economic downturn.” He announces “several temporary across the board steps that we feel are the fairest way to go.” The company is “suspending” annual pay increases and matching contributions to pension accounts, and will hold open all positions that are not currently filled. Steinberger adds, “We feel we need to takes these steps now, while making sure that we don’t interfere with our plans to grow the company over the long […]
Layoffs at Chronicle
Chronicle Books reduced its staff by five percent on Monday, citing the economic environment and a planned cutback in new adult titles for 2010. The company’s children’s book line is growing, PW reports, though backlist sales have been in steady decline.
It's Official: Reed Can't Sell Magazines
After nearly a year of trying almost anything to get someone to take their magazine unit, Reed Elsevier announced “it has terminated discussions with potential bidders,” saying the board “has judged it not possible to structure a transaction on acceptable terms at this time.” Keith Jones, who had run RBI UK, will serve as ceo. Reed reaffirms that it has no long-term interest in business, saying the company’s strategy “remains to divest RBI in the medium term when conditions are more favorable.”Announcement
Macmillan Adds Salary Freeze
Similar to moves at Pearson and HarperCollins, Macmillan ceo John Sargent announced a salary freeze starting January 1 for employees making more than $50,000. “All bonus plans will stay in effect, but all are sensitive to individual company profitability and individual performance. Thus the impact on individual bonus plans will vary.” Sargent notes: “Since I spoke to you a month ago about the economic crisis and its impact on our company, I can’t say much has changed. We are now clearly in a recession and there is still no clarity on how long or deep it will be. What is […]
Pesce Remains Confident
In the Wiley conference call, ceo William Pesce noted that in the trade “Sell-through and reorders through major accounts were weak” and added that “we are operating in a very challenging retail environment, mainly in the States, but also abroad. Clearly, market conditions are having an adverse effect on our PT business.” But he also criticized other ceos and expressed a strong belief in Wiley’s future: “Wiley has endured the War of 1812, The Civil War, Two World Wars, The Great Depression and the ups and down of many economic cycles and we will navigate through the current turmoil. We […]