Tag Archives: IBS-STL UK

A Message of Hope from Germany: Co-operation is Possible

Late last night, Saina Veigel left the following comment on my post A Modest Proposal to Save STL. Please read it and reflect on the possibilities this model could open up for us here in the UK:

Hello fellow Christian merchants in the UK!

I am/was a Christian book merchant from Germany and I failed miserably with my online bookstore because only the big online stores find costumers AND make a profit online nowadays in Germany. The competition is VERY TOUGH – even online!

I offered secular and Christian books with a charity-scheme but still didn’t succeed. I just closed my shop down in September 2009 after 1,5 years. You have to be part of a chain or of a “book merchants buying co-operative” to survive.

But I may have some interesting information for you:

Our biggest German Christian wholesaler “Hänssler” faced severe difficulties a few years ago and they formed a co-operative – or more precisely: they started a TRUST/BENEFICENCE. In this case Christian publishing houses/media companies pitched in to save the wholesaler (I don’t know the details though).

Now – many Christian publishers stand as a team together but, everyone remains independent at the same time. Get some information and advice from Frieder Trommer in Germany, if you can. This trust helps the Christian book trade. I don’t know how it works but it seems to work REALLY WELL. The TRUST’s website is: http://www.stiftung-christliche-medien.de/

Churches and Selling Books …

I personally don’t believe that churches can function as “alternative bookshops”. They are not trained to do so. They will mess it up. Booktables in churches are successful here but the whole approach has its limits. You can only use volunteers up to a certain point. You can’t expect the church to run a business. Selling Christian books IS a business – even though it is also a ministry. Business has to remain business. If it were to be a pure ministry one would have to ask for book donations instead and then you don’t have a business anymore. It just doesn’t work.

I am half British and half German. I always felt that English Christians are better off because they have so many more Christian titles to choose from. So much variety in Christian literature!

I really hope that the British Christians will wake up to the fact that what they have is precious and rare (compared to the rest of the world).

Wish you all much wisdom, God’s grace and a wonderful miraculous “solution”.

Best wishes, Saina

By working together, I believe that we can save STL – Wesley Owen – Authentic Media. We do not need a white knight in shining armour to ride to the rescue: we need, rather, to learn to trust one another and work together.

New Ways of Being Bookshop

Matt Wardman writes:

Following recent posts by Phil Groom about the crisis in the STL Distribution company on the SPCK News Site and here at the Christian Bookshops Blog, I thought I’d run a few reflections up the flagpole.

I have no involvement in bookselling, apart from loving and buying books, but, like the Mouse, I have tried to listen throughout the last 2 years of supporting the campaign to scrutinise the rundown of the former-SPCK bookshop chain.

Where are we?
Some parts of Christian Bookselling is now in chaos – obviously. SPCK will not be back as a bookshop chain, and that has taken away a good deal of infrastructure and resources (did I really write that 2 years ago? – it’s the original Radio 4 interview) upon which many other activities and smaller projects used to rely.

Now, events at STL are putting a question mark over the future, or at least the nature, of the trade’s distribution backbone as well. I won’t say more about STL because I’m not in the loop and I’ll get it wrong.

Further, I remember Phil’s comments on the Christian Booksellers’ Convention at this time last year:

Perhaps I am unduly pessimistic in regarding Bible Society’s acquisition of CBC, the Christian Booksellers Convention, as an effective obituary notice for CBC. Perhaps merging CBC with CRE, the Christian Resources Exhibition, is not so much the end of an era as the beginning of a new one. …

This, quite simply, makes it a non-starter for a retailer focused trade event. We are already faced with online competition from our suppliers: are we also expected to smile sweetly and welcome direct, face-to-face competition as those same suppliers offer our customers deals to walk away with that we will never be able to match because those suppliers will not offer us terms that will make such deals possible?

Putting these insights together leads me to think that an important need at this time is to place the retailer back at the heart of the dialogue, and look for ways to survive in a very difficult environment.

The SPCK Experience
The “former-SPCK” position is that we have lost 25 bookshops, but with a variety of successful (or at least “working”) models emerging to fill the gaps in a surprisingly large number of places.

  1. Independent bookshop in (and supported by) a Church in Cardiff.
  2. Bookshop in a former church combined with Cafe in Norwich.
  3. Market-stalls – Birmingham and, I think, Worcester.
  4. Combined Christian/Secular bookshop in an indoor market, including a wide range of other products in Lincoln.
  5. Completely new bookshop, filling a similar space in the market, but with a local focus

And these are simply a few examples off the top of my head.

In addition, there continue to be other places where there may be an opportunity for a new project and an existing customer base / supporting community which would support such projects.

I’m saying “look how well these people are doing”; I’m saying “it can be made to work, even now, in the middle of a recession”.

What is working?
Having watched, written and campaigned about the dismantling of the SPCK network over a 2 year period, I’d note the following factors:

  1. The foundation of a loyal customer base – which can come from local churches, being a unique supplier of “product x”, engaging people via a blog, or on the ground (what about a Craft Table), or from an existing community seeking a new bookshop after the local SPCK vanished.
  2. Wider range of products. This can be Christian non-book products; but it can also be by treating Christian books as a specialist category within a non-specialist shop.
  3. Form of incorporation. As a comparison, the OXFAM Bookshop chain receives an annual subsidy of well in excess of one million pounds simply from the reduction business rates for charity properties.
  4. Online trading. Some places do this successfully, but I don’t have case studies.
  5. Certain churches have even used this as a strategy to support themselves, for example the Bradford-based Harvestime organisation.
  6. Creative cost-sharing/reduction with other organisations.
  7. Putting something “upstairs”; OXFAM tend to do it with other specialist franchises, such as secondhand wedding dresses.
  8. Collaborating with other local independent businesses in the traditional way.

I’d acknowledge that there is nothing fundamentally new here, and that many bookshops already do some or all of these.

They all have these points in common: innovation, flexibility and different tactics in each place.

Reframing the Dialogue around Retailers
These are my key suggestions as to current needs and opportunities:

  1. A lack of focus on the retailer the traditional trade events.
  2. A need for innovation.
  3. Intense economic and other pressures.
  4. Recent accounts of what others are doing successfully (or equally importantly, not successfully), how, and in what context.

I wonder whether some type of event deliberately aimed at helping retailers learn from others’ experience and to share successes and failures would be beneficial at this point.

Wrapping Up
I’ll stop there for now, and may add some more thoughts later.

What do you think?

Appendix: Some Related Discussions (added by Phil Groom; most recent first, updated 08/12/2009)

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

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.”

A Modest Proposal to Save STL UK

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

STL UK: Rumours and Counter-Rumours

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

IBS-STL UK: “a sustainable business ministry model going forward”

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.

What’s happening at STL? BA CBG to Carlisle, blog updates coming soon and invoices – aaaargh!

Today sees the the BA Christian Booksellers Group gathering at STL HQ in Carlisle for its AGM tomorow. The timing, regrettably, is such that I can’t be there, but I take this opportunity to wish all who do attend a very worthwhile meeting: I look forward to hearing what transpires. Who will make up our new committee? What will STL have to say for themselves?

Yesterday I tweeted Steve Mitchell (@SCRMitchell) — head honcho at Wesley Owen and a member of the STL blog team — to find what’s happening with their blog, which hasn’t been updated since the Message from Keith Danby was posted a few weeks ago. Steve tells me that we can expect some updates after today’s and tomorrow’s meetings and assures me that the issues being raised in the comments will be addressed: watch that space.

I was also up until midnight beating my head against the brick wall of STL’s incompetence, attempting to reconcile my invoices with their latest statement and their postings at batch.co.uk: the phrase “dog’s breakfast” barely begins to cover it. It took me approximately 20 minutes to whizz through all my other suppliers invoices; then almost 3 hours to work through STL’s, and I was still left with over £500 of unreconciled invoices and credit notes.

The problem is exacerbated by STL’s failure to make use of the batch claims system. For those who don’t use batch, allow me to explain: batch has a very straightforward way of dealing with invoicing errors. You call up the invoice onscreen, identify the problem item, select a reason for your claim (wrong item supplied, incorrect carriage charge, wrong discount etc) and hey, presto: that item is magically removed from your invoice total, allowing you to pay the remaining balance whilst your supplier deals with the claim.

STL, on the other hand, insist on doing their own thing, raising a separate credit note whenever they screw up and then reinvoicing. Sometimes the credit notes cross reference the original invoice; sometimes they don’t. As I said: dog’s breakfast.

This is not a criticism of those wonderful folk in STL’s customer services department who are continually working their socks off, who remain unfailingly polite as they attempt to pick up the pieces in the midst of the ongoing chaos. Janette Ivison and Michael Swan in particular deserve recognition for their good humoured and efficient responses whenever I raise a query: my thanks to both of them and to those working with them. The problem is that the queries I constantly find myself raising should not be necessary in the first place.

Today, I shall attempt to reconcile the rest of my STL invoices and credit notes. It may or may not work, but it will almost certainly take most of the day. I am close to despair and seriously considering boycotting STL as a supplier.

It’s become clear that I am not alone in feeling like this: STL, be aware.

STL: Light at the End of the Tunnel?

Update, 22/11/2008: Thanks to Steve Mitchell for permission to reproduce his Powerpoint Presentation, SAP Go Live.

Cynics say that the light you think you can see at the end of the tunnel is the headlamp of an oncoming train. With Christmas fast approaching I guess that’s an easy mistake to make as we wait for our deliveries from STL to come through. But my own experience of walking through a railway tunnel (a few years ago at Birmingham New Street Station, if you must know) tells me that an oncoming train doesn’t necessarily spell disaster: on that particular occasion, the train stopped and the driver gave me a lift in his cab. It’s the only time I’ve ever had the privilege of riding in a train driver’s cab and it’s an experience I’ll never forget.

It was a bit like that at today’s meeting of the Booksellers Association’s Christian Booksellers Group: a sense of not quite despondency, but something fairly close, hung over us. Christmas is coming, our deliveries aren’t and our customers are going elsewhere; then Steve Mitchell (Director of Stores, Wesley Owen) stepped in with a presentation and explanation, an insider’s view of what had happened, what went wrong and how things are panning out. This was the view from the train driver’s cab: in the tunnel with the rest of us, but in a unique position to assess the situation.

Steve’s explanation was frank and straightforward, with no denials or excuses but with honest analysis, humble apologies and the assurance that everyone at STL is doing their utmost to bring things back up to speed. He was unable to offer a date for when that is likely to be but again emphasised the company’s commitment to resuming normal service a soon as possible.

He circulated a letter from Graham Sopp, STL’s Chief Executive (Europe), which has also been distributed to the trade by email:

Open Letter to the Trade

GJS/LR/10657
19 November 2008

I am writing to apologise for the problems caused to your businesses as we have gone live with a new software system at STL Distribution.

The decision to change systems was not taken lightly but our old system, which was 20 years old, was beginning to show distinct signs of age and we feared that it would become unstable. We had already found immense problems in trying to upgrade the system to provide functions required by today’s market.

We originally planned to implement the new system in August. However as the date approached, it became apparent that further testing of the new system was necessary before we could commence training people in how to use the system. We were faced with a choice of going live in late October or waiting until January 2009. Unfortunately, we would have faced immense difficulties in standing down our external project team of consultants for three months while we prepared to go live and then to re-assemble that team in January. After extensive testing of the system we were confident we could start with, at most, minor disruption. So we took the decision to go live in October.

Most of the problems we have encountered over recent weeks are related to business process bottlenecks and are not directly related to software and, in fairness to the system team, could not have been anticipated by the extensive testing we carried out.

We have now deployed our warehouse team in a different way which we are confident will optimise the flow of orders through the warehouse.

At today’s date we are picking orders from 13 November onwards and are working hard to catch up.

I am determined to resume same day despatch for the vast majority of orders as quickly as possible, but I need to be confident we can consistently provide this high level of service. I will write to you again soon when I am convinced we can commit to same day despatch.

I know the last few weeks have been difficult for you as our normal service levels have been disrupted and I apologise once again. We are working round the clock to resolve these issues. I would also like to thank those customers who have contacted us expressing their support and understanding for our team in this difficult time.

Graham Sopp
Chief Executive (Europe)

STL: Back Online but not Back Up to Speed

It’s been an interesting couple of weeks for those of us who’ve become used to checking STL’s stock availability and ordering online: the website was taken out of commission back on Thursday October 23rd for an IT systems upgrade over the following weekend. If things had gone according to plan disruption to service would have been fairly minimal and the site would have been restored on Tuesday October 28th.

It didn’t happen. Instead, a series of notices appeared assuring us that restoration was imminent… until suddenly, this afternoon, there it was: stldistribution.co.uk back online! Congratulations to all concerned.

Unfortunately, however, there are still a number of bugs in the system leading to various difficulties which STL are working desperately to resolve — delays in order processing, invoicing errors and incorrect carriage charges levied, to name three that I am personally aware of — and Mark Hurley, Commercial Director, is sending out periodic updates on the situation along with apologies for any inconvenience caused:

The warehouse continues to run at full capacity, but we are aware of problems in a number of areas; for example, we have charged carriage on some backorders – this and others we are working rectify as soon as possible.

We are disappointed if we have let you down and we would like to assure you we are doing all we can to meet the service levels you require. We acknowledge that the most important thing we can do at this time is to deliver your orders promptly to your door.

(Message dated 5/11/2008)

My advice is: check your invoices carefully, contact customer services promptly as soon as you notice any discrepancies and, for the time being, order elsewhere if the products you require are available from another supplier. At the moment STL are aiming for a 48 hour order turnaround; I suspect it may be some time before we see the same-day despatch we were used to before the upgrade…

Last but not least: keep the good folk at STL in your prayers; I’m sure they’re finding things just as frustrating as we are.