Bookspan Laying Off 280; Closing Clubs, Madison Park

by Jim Milliot, PW Daily -- Publishers Weekly, 5/21/2007

Approximately six weeks after it acquired complete ownership of Bookspan, Bertelsmann has initiated a major overhaul of the book club business, a process that will eliminate 280 positions, or about 15% of its workforce of 1,900. As part of integrating Bookspan into BMG Columbia House, an unspecified number of smaller clubs will be closed as will Madison Park Press, the publishing program launched about 18 months ago.

Spokesperson Paula Batson said the realignment "will enable the company to focus its assets and efforts on its core book club brands such as Book-of-the-Month, Doubleday, Black Expressions, Crossings and The Literary Guild as well as its music and book club businesses." Although a complete list of the clubs being closed was not available, among those which will be shut are the conservative club, American Compass as well as InsightOut Book Club, which is aimed at the gay community. Other clubs being closed include Behavioral Science Book Service, Early Childhood Teachers's Club, Nurse's Book Society and Equestrian's Edge. The clubs will be phased out over the rest of the year and members will be given the chance to transfer to a different club. Books from some clubs will also be made available through the general interest and other specialized clubs.

The decision to close Madison Park was also made to allow the company to focus on its core businesses, Batson said. The company will honor all of its publishing commitments, but will not do any more original publishing. The fate of Madison Park publisher Carole Baron was unclear at press time. Of the 280 jobs being cut, some employees will remain with the company for several months to help phase out the clubs.