BCA could be rescued from failed Webb Group

The former owners of Book Club Associates (BCA) have said they would like to see the business “go to a good home” but admit its contribution in sales was not enough to keep parent company The Webb Group in business.

Yesterday it was revealed that The Webb Group, owned by restructuring company Endless LLP, had gone into administration with 58 positions made redundant, including BCA’s commercial director Claire Rose and three other employees from BCA.

Investment director at Endless, Matthew Deering, said that while BCA’s £3m turnover “bolstered The Webb Group’s trading position”, it was not enough to keep the company viable.

Deering said: “Endless bought it 18 months ago from the Findel group and it was highly loss-making at the time. We have had to take it through some heavy restructuring trying to get it back to profitability, however, The Web Group is a CD and DVD business and that is a tough market to be in.

"In the end the business was not viable under its current cost structure. BCA bolstered the trading position for the overall group and had a £3m turnover but that was not enough.”

He added: “Now BCA is in the hands of the administrators and up for sale, the administrators are open to offers.”

Since BCA was acquired by The Webb Group last March, the company made a number of changes, including increasing the number of pages in its speciality club catalogue BooksDirect and rebranding its Books for Children brochure, all of which it hoped would increase overall sales by 30%.

Deering added: “I think BCA saw some positive trends and had reacted positively to change with some positive signals. We would certainly like to see the business go to a good home.”

Leeds-based administrators BDO has been appointed to handle the sale of The Webb Group's assets, and has told press it is actively looking for a buyer. Besides BCA, the other companies owned by The Webb Group affected by its administration are Choices UK, Webb Group Limited and Webb Ivory Ltd.

BDO business restructuring partner Graham Newton said: “Unfortunately the economic climate and difficult trading conditions significantly affected the business. The joint administrators are taking all necessary steps to mitigate losses to customers, creditors and stakeholders who are affected by the closure of these companies and, going forward, we will seek to maximise recoveries for the benefit of all creditors.”

Those with outstanding orders at any of the affected retailers have been asked to contact BDO on 01793 698029 or info.webbgroup@bdo.co.uk.