Eric Ellenbogen, who was named president of Golden Books in June, has resigned from the company to take a new job as president and CEO of Marvel Enterprises Inc. Ellenbogen joined Golden in August 1996 as president of its entertainment group, following Golden's purchase of Broadway Video Entertainment. His promotion earlier this year was part of what Golden chairman Dick Snyder called Golden's transition from a "classic publishing company to a family entertainment company." It appears, however, that Golden is headed back toward being a children's book publisher.
Commenting on Ellenbogen's departure, Snyder said more streamlining is ahead for Golden as the company attempts to "focus on its core children's book business." Snyder said that while the entertainment group is a "vital part of our portfolio," the top priority for the company is to "lay a solid foundation of profitability" in its children's book operation. There are no plans to replace Ellenbogen as president, and the company reported that it would be "finalizing its senior management team in the next several weeks." Among those already trimmed from the corporate staff is Kathy Makrakis, v-p for corporate communications.
Although Golden's new financing agreement has bought the company some time (News, Nov. 16), the publisher still faces several financial obstacles, including the possibility that it will be delisted from the Nasdaq stock listings. In Golden's 10-Q filing with the SEC, it noted that the company has until December 9 to meet the Nasdaq requirement that it maintain a closing price of at least $5 per share; if it cannot meet that standard, it will be delisted on December 11. A Golden spokesperson told PW the company will work to stay a Nasdaq member.
The 10-Q also said that due to its financial performance and restructuring efforts, Golden is evaluating whether it will be necessary to make year end charges that "could be substantial."