Perseus Consolidating Distribution Operation

by Claire Kirch & Jim Milliot -- Publishers Weekly, 11/6/2006

Approximately three months after acquiring Consortium Sales & Distribution, the Perseus Book Group is moving to integrate the distributor with its CDS distribution division to form a single operating unit. Under the reorganization, effective March 1, all distribution clients will be distributed from the Perseus Jackson, Tenn. distribution facility. While Consortium’s sales and marketing group will remain in St. Paul, its customer service, finance and warehouse operations will be taken over by the Jackson unit.

The consolidation will result in about 30 layoffs, which will affect seven employees in the customer service department, five employees in the finance office, and 18 employees in its warehouse. Don Linn, Consortium CEO, will leave the company at the end of the year, although the company’s Julie Schaper will remain as president of sales and marketing.

Under the restructuring, clients that use Perseus’ sales and marketing capabilities will become part of Consortium, while publishers that want use only part of Perseus’ services (such as fulfillment) will become part of CDS, which has just been renamed Perseus Distribution Services. When appropriate, Perseus will augment the Consortium sales effort with additional coverage in such areas as special sales, gift, warehouse clubs, and academic channels

About 100 publishers had been distributed by Consortium, while CDS/Perseus handled distribution for more than 50 clients.