The Bookseller.com

28th August 2008

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Bertelsmann confirms BCA sale

17.07.08 Catherine Neilan

Bertelsmann has confirmed that it has entered "a sales process" to shed its UK book club operator BCA. In a letter to Direct Group staff, Bertelsmann c.e.o. Hartmut Ostrowski said that the move followed "intensive discussions" over the past few months.

Last week, the German group sold its US book club interests, and will now only retain Direct Group’s businesses in German and French-speaking regions, as well as Italy, Spain and Portugal.

"By taking this decision, Bertelsmann is concentrating on Direct Group businesses in the large European markets," Ostrowski said.

Last week, Bertelsmann announced the sale of its North American book club businesses to the privately held Najafi Companies. Direct Group’s profits fell to €10m in 2007 from €110m in 2006. Revenues also fell from €2,665m in 2006 to €2,555m in 2007.

Claire Power, special projects manager at HarperCollins' mass market imprint Avon, said that orders had dried up with BCA over the past few months. She added that she was not surprised the company was up for sale. "Something needed to change; it was stagnant for the past few months," she said. "But it would be awful to see them disappear—there is a market there."

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