Cold Cut Distribution, a 13-year-old wholesale distributor of small press and independent comics in Salinas, Calif., is soliciting offers to buy its operations. Cold Cut owner Mark Thompson said he is not closing down the business and said that he has received serious inquiries from about a dozen interested parties. Although the process is only at a preliminary stage, Thompson said he anticipated a possible sale by the end of September.
Thompson said he was selling Cold Cut because “this is a tough business and I’m tired of doing it. I’m just burned out.” Although Thompson said several possible buyers have contacted him about purchasing Cold Cut, he emphasized that this is “just the talking stage, but I was surprised to get so much interest. I thought I’d get two or three offers.” The small company has been gearing down its operations in anticipation of a sale and has gone from 10 paid employees down to one, Matt High, who told PWCW he will continue to maintain the business and fulfill orders as long as needed. Cold Cut leases warehouse space and has inventory on hand worth about $500,000 in resale value.
Despite his desire to sell the company, Thompson said he believes Cold Cut remains a viable business with the potential for growth. “I’m just not able to put in the effort that it would take,” he said. Thompson said the company’s biggest problem is that “we’re a West Coast wholesaler with a lot of customers on the East Coast. Freight and California rent are killing us.” Thompson said it was likely that the new owner would move Cold Cut to either the Midwest or the East Coast.