Corus Entertainment Inc. has confirmed that it is seeking to offload its Klutz Publishing division as part of the company's plan to cut its debt by up to C$150 million ($95 million). "We are looking at a variety of options for Klutz—selling, partnering, joint venture," Kerry Morgan, director of corporate communications, told PW. Morgan would not comment on whether or not Corus has been approached by parties expressing an interest in Klutz.
Corus acquired Klutz in May 2000 for $74 million, but the publisher has not performed up to expectations. In the fiscal year ended August 31, 2001, sales in Corus's publishing group, which comprises Klutz and Kids Can Press, fell 5.4%, to C$49 million, and EBITDA dropped 60%, to C$2.8 million. Although Corus does not break out Klutz and Kids Can results, it noted that sales and EBITDA at Kids Can grew in the year. As for Klutz, Corus reported that the company had been hurt by financial difficulties and bankruptcies at several of its major customers, and that Klutz had taken a C$1.5 million provision to cover bad debts.
