November 16, 2009

And so it ends: STL UK puts up ‘For Sale’ sign

Posted by Phil Groom under News | Tags: , , , , , , , |
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IBS-STL UK Announces Plans to Sell Operations

IBS-STL UK Announces Plans to Sell Operations

In a press release (full text below or pdf, 86kb) issued at lunchtime today, Biblica announced that they were finally pulling out of their UK operations and putting the division up for sale. In the press release, Keith Danby, Global CEO, is quoted saying,

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. 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.

Blame for the company’s difficulties is laid firmly at the door of last year’s unsuccessful IT systems upgrade which, combined with the current economic climate, resulted in unsustainable cash flow and stock movement difficulties:

The move has come after a succession of financial problems, in particular the failed implementation of a new SAP computer system in October 2008, the effects of which were exacerbated by the economic downturn. These have caused significant cash flow pressures, excess stock, and supply chain and service difficulties in its distribution and retail units. They have culminated in the decision to exit the business.

This decision comes in the wake of repeated reassurances from Danby that there was “no immediate crisis within the company” (August 2009) and that there was “a sustainable business ministry model going forward” (September 2009).

One possible way forward, proposed here on Saturday, would be a trade buy-out: if enough of us are willing to stand together then between us we could take the business on as a shared ownership company. But who will stand? Who will rise to the challenge?


Full Press Release
(or download pdf, 86kb – includes Notes to Editors and contact info for media and other enquiries)

LEADING CHRISTIAN CHARITY IBS-STL UK ANNOUNCES PLANS TO SELL OPERATIONS DUE TO FINANCIAL CHALLENGES

Leading Christian book and Bible charity IBS-STL UK today announced that it has appointed Baker Tilly Corporate Finance LLP to pursue the sale of its operations.

The move has come after a succession of financial problems, in particular the failed implementation of a new SAP computer system in October 2008, the effects of which were exacerbated by the economic downturn. These have caused significant cash flow pressures, excess stock, and supply chain and service difficulties in its distribution and retail units. They have culminated in the decision to exit the business.

IBS-STL UK convened an emergency task force led by Global President of Biblica and former CEO of STL, Keith Danby, which has been in constant dialogue with its suppliers and bankers. It had also engaged restructuring and business process consultants in an attempt to resolve the systems and financial challenges.

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. 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.”

The corporate finance division of Baker Tilly is actively marketing the operations of the charity to a number of interested parties and is hopeful it will complete negotiations for the sales or potential closures within the next few weeks. IBS-STL UK was founded in 1962 and has grown to become a major UK charity.

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. IBS-STL UK is part of Biblica, a global Bible translation, publishing, distribution and outreach ministry serving more than 100 countries with books, Bibles and other Christian resources. Biblica said the planned sale of the UK operations will not impact its other global operations and donor funds supporting Biblica’s worldwide outreach ministries will not be affected.

Michael Fitch, Chairman of the IBS-STL UK Board of Trustees, concluded: “We continue to believe strongly in the power of God’s Word and Christian resources to change peoples’ lives. 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.”

 

November 14, 2009

A Modest Proposal to Save STL UK

Posted by Phil Groom under Book Trade Ramblings, Musings... | Tags: , , , , , , |
[164] Comments 

We all know that STL UK (or Biblica or whatever they’re calling themselves these days) are in deep doodah. That’s not rumour, it’s fact as stated by the man himself, Keith Danby, in his miscellaneous missives to the trade with repeated references to financial difficulties and ongoing consultations with bankers and others.

There are some signs of hope, of an improved cash flow: one supplier I spoke to this week told me that their account, six months overdue, had at last been paid. Other sources, however, tell me about supplier accounts being put on hold due to non-payment; and I know, from my own experience of having to source goods elsewhere, that warehouse stocks are not what they ought to be, especially at this time of year.

What we don’t know, of course, because they’re not telling us, is how deep STL UK’s financial crisis runs: hundreds of thousands, or millions? If the former — perhaps even if the latter — then I suggest that, if we’re prepared to act together, between us we have the power to rescue them.

UKCBD alone lists more than 600 Christian retailers, most of them actively trading, most of them STL UK trade account holders. Then there are the many church and other account holders as well as all the suppliers: that’s thousands of us who stand — to put it mildly — to be massively inconvenienced if STL UK goes to the wall.

My proposal, modest though it is, is simply this: we buy them out. Between us, we pay off STL UK’s debts — or enough of those debts to make their bankers do a double-take — and take them over as a shared-ownership company. Careful plans, terms and conditions would need to be drawn up, of course; but amongst us, surely, we have the expertise for that.

If as few as 1,000 of us contributed as little as £100 each, that would be £100,000. I think that, however, is a very conservative estimate of the amount we could raise: there are far more than 1,000 of us whose own businesses and livelihoods stand to suffer immensely if STL UK cease trading; and whilst some of us would struggle to find £100, many of us could contribute significantly more than that to a trade buy-out.

We’ve prayed together. The time has come, I think, for us to act together: to put our money where our mouths are and recognise that we ourselves may be God’s answer to those prayers.

Too little too late, I hear you say. Maybe so: the winds of change are blowing in our industry as more and more business is being conducted online; but let’s not allow the Christian book and retail trade in the UK to go down in history as blown away by an errant trade wind when we could have saved it had we only been blown along by the Spirit of God…

Appendix: Biblica Financial Reports

 

October 28, 2009

STL UK: Rumours and Counter-Rumours

Posted by Phil Groom under News | Tags: , , , , , |
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STL UK - Communications Update, 28/10/2009

STL UK - Communication Update, 28/10/2009

… and so another trade missive emerges from STL UK in another attempt to lay to rest the rumours of… of what exactly? Whatever the rumours may be, I haven’t heard them. What I do know is that all too often I’m having to place orders elsewhere for items that I’d normally expect to be able to obtain from STL UK.

Credit where it’s due, however, and thanks to those at STL who have gone the extra mile recently to obtain some of those items, and to their customer service team who remain unfailingly polite and helpful.

Please continue to pray for all concerned, for wisdom, grace and whatever other virtues may be called for; and maybe for a friendly millionaire to come along and help them out…

The missive itself:

COMMUNICATION UPDATE

Over the last few days there have been a number of rumours circulating about the current position of IBS-STL UK in regard to its future. This communication is to inform you of the current position.

Over the last few weeks the charity has been in discussion with its bankers and creditors, with a view to determining the best way forward. As with any charity or company going through financial difficulties, we have to be careful with regard to the interests of the creditors, as well as the ongoing work of the charity and ministry, about which we are passionate.

The period of our bank facility has been extended to enable us to carry out further work with appropriate consultants, looking at the various business models that the IBS-STL UK Management Team and Trustees have been considering. When this work has been completed, we will be in a position to decide and communicate on how we see the future.

Until then we are very appreciative of the patience shown and help given by many of our suppliers and ministry partners. We are grateful for the opportunity to continue serving our Retail customers through our distribution operations.

We will keep you informed as and when there is something to add.

Keith Danby
Chief Executive

Discuss here, or over on the STL Blog…

Previous Missives

Other Related Posts

 

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