Promotional children's book publisher Kidsbooks is consolidating its sales, marketing and editorial departments in new offices in Newburyport, Mass. The move entails closing its New York editorial and design office as well as its sales and marketing office in Boston. While most of the Boston staff is moving to Newburyport, about one hour up the coast, the editorial staff is not relocating, said managing editor Nancy Ellwood, who will help with the transition until February. New York— based employees who will remain with Kidsbooks in a small office include Vic Cavallaro, a Kidsbooks cofounder who remains publisher.

The consolidation comes about 18 months after Kevin Murphy, Kidsbooks president and a Boston resident, acquired the company. "Our consolidation will reduce operating costs," said Murphy, who is recruiting a new staff for Newburyport.

In addition to relocating offices, Murphy has decided to discontinue Kidsbooks' packaging division, which developed titles for book fairs and book clubs. Dropping the packaging unit will give Kidsbooks the ability to focus on the retail and specialty retail markets, as well as to launch Reading Challenge, the company's first imprint directed at the educational market. Kidsbooks will release 60 fiction and nonfiction books in 2005 under the Reading Challenge name.