SU Press Release 16/09/2009

SU Press Release 16/09/2009

Scripture Union, perhaps best known as publishers of daily Bible reading notes and holiday club resources, issued the press release shown below on Wednesday 16th September, announcing up to 25 job cuts in a major shake up intended “to create a more cost-effective, flexible, mission-focused organisation”.

Consultations with staff — any of whom could be affected, according to the press release — are in progress and should be concluded by November, the plan being to bring the “new model” for the organisation into effect in January next year.

Scripture Union announces plans for a flexible, digital future

The leadership of Scripture Union in England and Wales today announced a major re-shaping to create a more cost-effective, flexible, mission-focused organisation. The aim is to minimise overheads and drive resources from fixed costs into longer-term development of front-line mission through field work, publishing and holiday and mission events.

Scripture Union’s publishing arm will build on its ground-breaking commitment to digital resources, though its much-valued Bible Reading Guides and resources for churches will still be available in printed format.

Face-to-face work with children and young people will be increasingly managed and funded regionally, allowing for greater flexibility and responsiveness to local needs and opportunities. Central costs will also be pared down, with head office positions being reduced.

This is the most radical re-shaping of the organisation in a generation following on from the strategic investment in digital ministries. To achieve it the movement will shed some staff posts and seek to increase the number of locally based associate roles. The move is likely to reduce the number of existing staff posts by 25. Any employees could potentially be affected, and any that are will be offered help to find new work.

Commenting on the developments, Scripture Union Chief Executive Keith Civval said ”Our calling to make God’s good news known to children, young people and families hasn’t changed. We’ve been carefully seeking God for the way forward and this move is about being faithful to our heritage in a new context. These are tough recessionary times and we can’t do everything, so we are choosing to invest limited resources wisely.”

Scripture Union has begun a comprehensive consultation with its staff, which will be concluded by the end of November. The new model will come into effect in January 2010.

IBS-STL UK Trade Announcement 15/09/09

IBS-STL UK Trade Announcement 15/09/09

In a new trade missive released this afternoon, Tuesday 15th September, Keith Danby has sought to further clarify IBS-STL UK’s trading position, reassuring trade partners that “there is a sustainable business ministry model going forward”, reiterating the company’s ongoing commitment to the UK trade and thanking those who have supported the company through prayer:

On the 14th August I made a statement about the current trading position of IBS-STL UK. This was in response to concerns within the trade and rumours circulating regarding our solvency. At that time I informed you that we were neither going into liquidation nor administration and that we were in discussions with our bank, suppliers and external auditors to seek out ways in which we could work together to help improve our current cash flow problems and secure our future.

A team of external Accountants have since conducted a business review of the UK charity, and I am pleased to advise you that they have filed a report highlighting that although IBS-STL has been experiencing some severe cash flow difficulties during the summer months there is a sustainable business ministry model going forward.

We still face significant challenges in this current financial year and are continuing to work hard with our professional advisors, bankers and suppliers to resolve our cash flow challenges and return to normal trading conditions as soon as possible.

IBS-STL UK Trade Announcement 14/08/2009Keith Danby, Global CEO of IBS-STL/Biblica has spoken out in a Trade Announcement issued this afternoon to quell rumours that IBS-STL UK may be “going into ‘liquidation’ or ‘administration’”, reassuring the trade that “there is no immediate crisis within the Charity” and reaffirming his own personal “commitment to support the UK Christian trade both in the retail and supply sectors.”

There have been a number of rumours circulating suggesting that IBS-STL U.K. is going into ‘liquidation’ or ‘administration’. I can confirm that the charity is neither in liquidation, nor in any form of administration.

A number of factors including the SAP implementation have caused STL Distribution serious Supply Chain difficulties, which have resulted in severe cash flow problems.

I met with a number of our key suppliers earlier this week in London to appraise them of the situation…

Yesterday, 7th January 2009, STL announced a major top-level restructuring, placing the blame squarely upon “the global economic crisis”:

Over the past twelve months this country has suffered the effects of the global economic crisis, from which the Christian sector is not immune.

Due to the need to address the serious downturn in trading, both in the wholesale distribution and retail sectors, the leadership of the Charity has decided to restructure its UK operations. Graham Sopp will step down from his role of UK Chief Executive and take a new role of European Ministries Director, which will include responsibility for UK Resource Development and Fundraising.

Fred Slack will leave his role as Director of UK Fundraising after a suitable period of handover.

Keith Danby, IBS-STL Global President, will assume the responsibility of leading the UK Charity with immediate effect and will lead an in depth review of all aspects of the ministry in preparation for the new fiscal year. Further details of the new structure will be available following the completion of this review.

You can read the rest of the statement on the STL Blog.

What puzzles me about it is that no one at STL seems (publicly at least) to have made any connection between the ‘downturn in trading’ and the frankly disastrous attempt made by STL to upgrade its IT systems at the end of October last year, from which it has yet to fully recover…

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