bookpublishing

Publisher’s Weekly reports:

The sale of Publications International Ltd.’s children’s publishing group to the toy maker RC2 Corp. has been called off. Curt Stoelting, CEO of RC2, cited high financing costs and the current credit crunch for RC2’s decision to not go forward with the deal. “Recent shifts in the capital markets have impacted the availability of capital and increased the costs of financing,” Stoelting said in a statement, adding that the current conditions “precluded is from structuring a transaction with the proper levels of operating and financial flexibility.”

Just about everyone is trying to determine how much the current market crisis and credit crunch will directly affect their companies’ daily functions. Big acquisitions like RC2 Corp.’s of Publications International’s children’s publishing group may be forfeited without the access to funds that businesses big and small have previously had little trouble getting. While banks everywhere appear to be merging to avoid bankruptcy, my best guess is that mergers in publishing will be few this year and next.

I was told by a colleague who spoke with our company’s president that the credit crunch alone will have very little effect on the company. But it doesn’t mean the current economy isn’t hitting us hard. At least though, this is one hurdle we can get over.

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