Less than a year after it came under new ownership and management, Troll Communications has filed for Chapter 11 bankruptcy protection. The filing set in motion a series of events that could lead to the sale of a large amount of its assets.

Troll once had $130 million in revenue and was considered the second-largest school book-club operator in the country. But when the Mahwah, N.J., firm filed for bankruptcy, it marked a new low point in what had already been a tumultuous six years. According to court papers, the company is looking to sell a substantial portion of its assets and repay unsecured creditors, the biggest of which, printer Quebecor, is owed more than $3 million. About $4 million in club assets may already be on its way to Scholastic, which has put in a bid. More assets may be unloaded soon.

It's still possible the company could reorganize itself while under Chapter 11, though insiders acknowledged it was not likely. "It's just disappointing. There's nothing more to say," noted one person closely involved with the outfit, speaking on condition of anonymity.

Last summer, Troll was acquired by Quad Ventures, which bought it for an undisclosed amount from investment group Willis Stein, which had plunked down $70 million for the company only three years before. At the time of the latest sale, Quad's Andy Kaplan said he was optimistic the group could "leverage our management talent and strategic partnerships" to help Troll grow. He also brought in as CEO former Weekly Reader head Peter Bergen.

Unfortunately, the business had already begun its swoon.

In July 1997, then owner Pearson sold the company to Harlequin's Torstar for $140 million, and trouble spots soon became apparent. Former co-owner Jarret Schecter, who had been expected to oversee the company under Harlequin, resigned abruptly. The book fair operation, once a staple, floundered and was sold to Scholastic in 2001. The number of clubs went from six in the late 1990s to four. Between 2000 and the sale to Quad in 2002, its list of published titles had been slashed by as much as 50%, to between 50 and 100 titles. From its high point of $130 million, sales slid steadily and were down to $40 million last year.

In an interview, Bergen was critical about the approach of his predecessors. "There have been strategic mistakes along the way from the publishing side and the marketing side. There were some awful direct-mail packages," he said. "And in this business, it's difficult to turn on a dime."

Troll and its owners are still holding out hope for a turnaround. They asked the bankruptcy court for an $11-million financing agreement that can help Troll continue to function through the asset sale, and they are trying to secure enough money to pay a number of executives to stay on. Although the company is still operating, it's impossible to say for how long. "I'm not sure where it's going to go at this point," said Bergen. "It will all play out in the next six weeks."