Christian charity forced to put Wesley Owen on the block
18.11.09 | Victoria Gallagher
Christian bookshop chain Wesley Owen has been put on the market along with its sister companies STL Distribution and publisher Authentic Media, after parent company the Christian book and bible charity IBS-STL UK said it was experiencing "severe financial and operational strains". In total 490 jobs could be at risk if the company fails to find a solution.
The charity has appointed Baker Tilly Corporate Finance to "pursue the sale" of its operations. IBS-STL UK has experienced a succession of financial problems including the failed implementation of a new computer system in October last year, which has led to "significant cash flow pressures, excess stock, and supply chain and service difficulties in its distribution and retail units".
IBS-STL has created an emergency task force led by the global president of its US parent Biblica Keith Danby. The group has been in discussion with suppliers and bankers and has engaged restructuring and business process consultants in an attempt to resolve the systems and financial challenges. But Danby said: "Given the severe financial and operational strains we have experienced, the Board of Trustees and management team believe a sale or exit from all or parts of certain operations is a prudent and necessary step."
He added: "Whilst a difficult decision, we are focused on finding a solution to continue the important work of IBS-STL UK, to secure the jobs of the 490 people employed in our ministry, and to fulfill our financial obligations to our suppliers and creditors. We are working diligently and praying vigilantly for a successful outcome."
Baker Tilly was "actively marketing" the charity to a number of interested parties. It said it was hopeful it would complete negotiations for the sale or potential closure within the next few weeks.
IBS-STL UK has three trading divisions: Authentic Media, a book and music publisher; STL Distribution, a distributor of Christian resources and Wesley Owen Books and Music, a retailer with 40 shops in the UK. The charity employs 490 people. IBS-STL UK, formerly known as Send The Light, was founded in 1962 and is now one of the top 100 charities in the UK. The International Bible Society dates its origins back to 1802. The group was renamed Biblica in 2009, and is based in Colorado Springs. It had revenue of almost $70m in 2008. Biblica said the planned sale of the UK operations would not impact its other global operations.
Michael Fitch, chairman of the IBS-STL UK Board of Trustees, added: "We are praying that we can pass the torch on to other likeminded organisations so that our UK staff, suppliers and ministry partners can carry our work forward." Weekly meetings will now be held with the workforce to keep employees informed of the situation.
Comments on this article
By Phil Groom
It wasn't difficult to see this coming: back in August Keith Danby himself said he didn't think the UK marketplace was big enough to sustain the Christian book trade - see the discussions on the UKCBD blog, http://bit.ly/ukcbdblog - but there are more than enough of us with a vested interest to rescue it, if we have the will to stand together. We failed SPCK: let's not fail Wesley Owen!18 Nov 09 09:53
By A Booksell Blackweller
I'm sure Wesley Owen will get snapped up by someone. There needs to be this kind of shop in the UK. The worry would be the narrowness of theology of any particular buyer: WO should be there to serve the whole church. And I hope they can ditch all of that unsold gift stock that has been dogging them for years!21 Nov 09 13:20
By Margaret Brown Scotland
I can understand the financial difficulties that are happening in the UK and abroad but I would be greatly disappointed and sad if all of the Wesley Owen shops were to close in the UK . Our Christian heritage is fast declining and this unfortunately is adding to the decline. I personally would like to see a buyer coming in and at least taking over the Glasgow area for there is no other Christian resource outlet for a number of miles. I am sure this may well be the case in other areas around the country. I would like to add that I am saddened for the staff in Glasgow for they are excellent in their knowledge of Christian material and they are a joy to talk too.20 Dec 09 12:41
By Stanley Jones
How sad to see Wesley Owen go. Not only for its shops which are essential to the work of many Churches, but STL which supply many smaller local shops. Wesley Owen have been such an important part of the Keswick Convention - and other similar gatherings in our land.21 Dec 09 20:07
By Stanley Jones
How sad to see Wesley Owen go. Not only for its shops which are essential to the work of many Churches, but STL which supply many smaller local shops. Wesley Owen have been such an important part of the Keswick Convention - and other similar gatherings in our land.21 Dec 09 20:08
By Colin Ruddock
I am a christian music promoter of events in Manchester and artists with a vision to takeover the city with the gospel message in all areas, mainly music and events. I would like to speak to somebody about the concerns we have had here in Manchester over the years. Just one area is the location of Wesley Owen on Deansgate. The other is the price of gospel music, the other is the consistency of the staff. I have a good relationship with the music department, but there has been problems with other people. I would like to be apart of the reconstruction if Wesley Owen are to survive in Manchester.01 Jan 10 15:18
By Nathan Sharman
Book selling in general and minority interest retail areas are natural for the move to internet only operations as volumes in any one geographical area prove too small to substain retail outlets.Amazon was proving the effectiveness of this business model for bookselling from the mid 1990s. Wesley Owen's management should have seen this coming and moved to an internet based business model years ago. Christian retailers are unique in that they have easy access to their customer base; they can easly find the addresses of churches and then target their marketing resources in a way that would be the envey of other retailers and with the rise of National Christian Radio stations they can promote christian music in away that has not been possible up until now.04 Jan 10 16:52
By disappionted customer
Going into my local W O shop after Christmas I was not allowed to spend my W O gift/book voucher.I consider this to be a broken contract on their part so can I claim it back? Am I the only one who feels robbed? I spent the money and got nothing in return.04 Jan 10 18:17
By Aberdeen chick
Its really sad. I heard about this on sunday. Wesley Owen is the ONLY shop throughout Aberdeen (that I know) sells christian items. I wanted to buy a christan book as a gift the other day and was so saddened that in all of Aberdeen only the little shop tucked in George st was the only place I could find anything. WHS Smith devotes a single rack to ALL religions so they do not have much stock. I believe we should all rally round somehow to keep the torch burning in our land or else, we quietly slip into the dark ages....again!05 Jan 10 17:29
By Sandyb
Aberdeenchick - CLC is still there, just round the corner from Wesley Owen in the Credo Centre on John St. That said, my prayers are that WO in Aberdeen can find a buyer as both shops are valuable.19 Jan 10 12:23
By Ken Roberts
It's sad but inevitable. A lot of "holy hardware" and literature that was questionable didn't attract. Much easier to purchase good solid books via the iinternet and at better prices. Should have moved with the times long ago!27 Jan 10 10:54
By Donald DeeringA
A brief message of Christian support for Carol, Keith and Family,, Dear Keith It was just yesterday when visiting my brother nin Scarborough that I came across the article in the Evng Times and now home at Langthwaite I looked up on line,, what can I say but that I am sorry that at such a time as this that people need your assistance toward the Christian gospel more than ever, they realise their need less. Be assured of my warmest supportive thoughts and prayers, many happy memories of years and years ago !!,,,,Please send me a brief reply so I know you received,, Thanks,,,,Donald,,,,,,,,,,,,,,,10 Feb 10 19:14
