Handleman Selling NBD to Chas. Levy
Jim Milliot -- 6/15/98
As part of a company-wide restructuring, Handleman Co. has signed a definitive agreement to sell its book distribution business, NBD, to Chas. Levy. Handleman's book group was one of the country's largest ID wholesalers and had sales of $54.1 million in the fiscal year ended May 2, 1998, down 3% from sales of $55.6 million in fiscal 1997. The company attributed the decline to fewer hit titles.Handleman said it was selling its book unit, along with distribution companies in the video and software distribution business, "because these businesses or customers either did not provide an appropriate and consistent rate of return, or do not have the potential for sustainable growth and profitability." The book unit accounted for less than 5% of Handleman's annual revenues. A second sale saw Handleman sell its Sofsource educational software publisher to the Learning Co. in a stock swap valued at $45 million. The divestiture of the various units is intended to allow Handleman to concentrate on its core music distribution business and product line. In a deal made late last month, Handleman, through its North Coast Entertainment subsidiary, acquired a 75% interest in the itsy bitsy Entertainment Co., which holds the rights to a number of children's properties, including Teletubbies and Miss Spider. North Coast is responsible for Handleman's proprietary operations, including music, video and software products. Back To News---> |
