Nelson Weighs Sale of Gift Unit
Jim Milliot -- Publishers Weekly, 4/30/2001
As part of what it said is a plan to focus on its core publishing businesses, Thomas Nelson has hired UBS Warburg to help the company evaluate strategic alternatives for its C.R. Gibson gift division, including the possible sale of the unit.
Nelson has been trying to turn around the fortunes of its troubled gift division for over a year, but with mixed results. While sales rose 14% in the third quarter ended December 31, 2000, revenues were still far below expectations, and the division had an operating loss for the quarter and the nine-month period. Among the recent actions it has taken to improve the gift division's performance are the November hiring of Fran Salamon as chief operating officer and the decision to sell its Ceres candle manufacturer.
Nelson acquired Gibson in 1995 and spent a considerable amount of time and money restructuring its operations, including closing Gibson's Connecticut offices and centralizing operations in Nashville. For the year ended March 31, 2000, Gibson had sales of $87.8 million and operating profits of $414,000.
