Pressure Increases at Cedco

by Bridget Kinsella, PW Daily -- Publishers Weekly, 8/2/2005

Time appears to be running short for troubled calendar publisher Cedco. Court-appointed receiver David Bradlow is working to broker a deal between the company's fulfillment and printing companies that will permit Cedco to begin shipping titles. Until now, the companies have balked because they are owed money by Cedco.

"The inventory in the warehouses needs to be released," Bradlow says. He called the situation "fluid" and refused to give an exact figure for back orders. Other sources estimate the value of Cedco's orders at $10 million. "If they can work out a deal, it has to be done quickly" says Bradlow. Time is crucial since calendars have a short shelf life and retailers expect to receive their orders for 2006 in the next few weeks.

Bradlow is managing the company’s day-to-day business, and he plans to meet with Cedco founder and largest stakeholder Charles Ditlefsen and his lawyer, Terrance Hallinan today to try to find a way to keep the company afloat. At this point, those familiar with Cedco say the only way it might be saved is if a buyer stepped up.

"To reorganize would depend on somebody coming in and being willing to put money into it," Bradlow said. "Thus far, nobody has approached me with that in mind. This is a company that has been unprofitable for some time."