Reorg at Perseus/CDS
The integration of Client Distribution Services into the Perseus Book Group has resulted in the elimination of about 12 positions and the departure of CDS president Gilbert Perlman. Under the reorganization, Matty Goldberg, v-p of sales and marketing at Perseus, will oversee the entire sales organization, which will now have 27 reps.. Steve Black, COO of CDS, will direct the client distribution business, which handles distribution for approximately 50 companies.
Indigo Sales Slip in '05
The sale of its Campus Stores division and a net decline of two outlets were among the major reasons for the 2.3% decline in revenue at Indigo Books & Music for the fiscal year ended April 2, 2005. Total revenue was C$787.5 million ($637 million), although net income jumped 129%, to C$11.7 million ($9.5 million). Same-store sales at Indigo's superstores dipped 0.5% in the year and fell 2.3% in its smaller stores. Revenue in the online division rose 24.4%, to C$64.7 million.
BAM to Buy Back Shares
Books-A-Million has begun a tender offer to acquire up to four million of its shares, or just under 25% of those outstanding. BAM is using a modified Dutch auction procedure, which lets a company determine the lowest price at which a sufficient number of shareholders will sell their shares and then buys all the shares at that price. Under the plan, BAM will buy back its shares at a price ranging from $8.75 to $10 a share. BAM's stock price was at $10.10 before the market opened, June 23, the day the buy-back began. The tender offer will expire on midnight July 21.
'Eloise,' 'Olivia' Delayed
Two of Simon & Schuster's Children's biggest books for this fall have been postponed until 2006. Eloise in Hollywood and Olivia Does Christmas have both been delayed by a year because of "separate illustrator reasons," according to Tracy van Straaten, executive director of publicity at S&S Children's group.
Scholastic Settles FTC Charges
Scholastic has signed a consent order with the Federal Trade Commission to settle charges that its telemarketing practices for certain negative option book clubs violated FTC rules. As part of the consent order, Scholastic will pay a $710,000 civil penalty and agreed to disclose all material terms and conditions in its negative option sales pitches.
Schneider to Harper
Jonathan Burnham has brought over former Miramax colleague Kathy Schneider to HarperCollins, where she'll become associate publisher at the Harper imprint of the General Books Group. Schneider was publishing director at Miramax and also served in marketing spots for 10 years at Random House. Schneider is replacing Carrie Kania, who's becoming publisher of Harper Perennial and Harper Paperbacks; Kania in turn replaces Susan Weinberg and Michael Morrison, who oversaw the paperback lines.
A P&W Party
Poets & Writers celebrated its 35th birthday June 22 with a Bowery Ballroom bash on Delancey Street. Among the many writers who turned out were (l. to r.) Jonathan Lethem, Colson Whithead, Susan Wheeler, Nick Flynn and Francine Prose.
Pearson Buys Testing Unit
Pearson has agreed to acquire the testing and special education publisher AGS Publishing from WRC Media for $270 million. Pearson said sales at AGS increased by 20% in 2004 and operating profit was $23 million. WRC will use proceeds from the sale to pay down debt.
On Vacation
Sara Nelson is away this week. Her column will return in the July 11 issue.
