The scope of Meredith Corp.'s retreat from book publishing can be seen in the recent 10-k report the company filed at the completion of its fiscal 2008 year, ended June 30. Revenue in the book group plunged 50% in the year, which Meredith attributed to a 30% drop in gross sales plus a 50% jump in returns. Over the course of the fiscal year, the restructuring of the book group resulted in the laying off of 95 employees, following the elimination of 15 positions in fiscal 2007. To account for the overhaul, Meredith took a $9.7 million write-down for book inventory, royalties and prepaid expenses, plus $3.5 million in severance and benefits costs. The special charges resulted in an undisclosed net loss for the book group in fiscal 2008.
After a short period in which it tried to move beyond its core areas of DIY, cooking and gardening, Meredith began scaling back its book operation in July 2007. This spring, it took the downsizing a step further, abandoning all areas except those related to Better Homes and Gardens and some licensed brands. As part of the restructuring, the book division was merged into Meredith Retail, which is now part of Special Interest Publications. In fiscal '08, the division released 130 titles; no one at Meredith would comment on the number planned for fiscal 2009.
