U.K-based book publisher Parragon announced on Tuesday morning that, due to a number of years of “difficult market conditions and severe pressure on margins,” it will likely close sometime this year.
In its announcement, Parragon said it has told its employees around the world—including those in its U.S. office—about its plans. As part of the planned closure, the company will, in the U.K., enter a 45-day collective consultation process with employees. In other markets, the company said, it follow a "respective processes.” Parragon employs about 245 people worldwide.
In addition to publishing books featuring licensed characters from companies like Disney, Mattel, and Nickelodeon, Parragon also produces gifts.
In recent years, Parragon has implemented a number of reorganizations to address changes in the market. Unfortunately, as CEO Mike Symons said in a statement, those moves have not produced a turnaround. While progress has been made, Symons said that “the market has gone against us further than anticipated.”
While closing the business appears to be the likely option, the company said it is still exploring a sale of all, or part, of Parragon. That decision, however, needs to be made soon.
In a prepared statement, David Thomson, director Parragon parent company DC Thomson, said: “Whilst we are still open to offers and expressions of interest for the business, DC Thomson is unable to run this process indefinitely. Therefore, the company has made the decision to enter into a consultation process. This decision has not been entered into lightly and, as owners of the business for more than a decade, we are very disappointed to be making this announcement today."