eChurch Christian Blog

Third Sector – By Kate Youde

Bible charity IBS-STL UK puts its commercial side up for sale – Financial difficulties ‘exacerbated by recession’

Christian book and bible charity IBS-STL UK is looking for a buyer for its commercial operations after a “succession of financial problems”.

Its 490 staff learnt on Monday that the organisation had appointed accountancy firm Baker Tilly to lead the operation.

Financial difficulties, exacerbated by the recession, have left the charity with cash-flow pressures, excess stock, and supply chain and service difficulties in its distribution and retail units, a statement from the charity said.

A spokesman for the charity, which was founded in 1962, said the failed implementation of a new computer system in October last year had seriously weakened IBS-STL UK’s finances.

The charity 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.

It is part of Biblica, a global Bible translation, publishing, distribution and outreach ministry.

Keith Danby, global president of Biblica, said IBS-STL UK was focused on a finding a solution to continuing its work, securing jobs and fulfilling obligations to suppliers and creditors. He said the “sale or exit from all or parts of certain operations was a prudent and necessary step”.

“We are working diligently and praying vigilantly for a successful outcome,” said Danby.

REPORT FROM BOOKSELLERS.COM

Christian bookshop chain Wesley Owen has been put on the market along with its sister companies STL Distribution and publisher Authentic Media, after parent company the Christian book and bible charity IBS-STL UK said it was experiencing “severe financial and operational strains”. In total 490 jobs could be at risk if the company fails to find a solution.

The charity has appointed Baker Tilly Corporate Finance to “pursue the sale” of its operations. IBS-STL UK has experienced a succession of financial problems including the failed implementation of a new computer system in October last year, which has led to “significant cash flow pressures, excess stock, and supply chain and service difficulties in its distribution and retail units”.

IBS-STL has created an emergency task force led by the global president of its US parent Biblica Keith Danby. The group has been in discussion with suppliers and bankers and has engaged restructuring and business process consultants in an attempt to resolve the systems and financial challenges. But 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.”

He added: “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.”

Baker Tilly was “actively marketing” the charity to a number of interested parties. It said it was hopeful it would complete negotiations for the sale or potential closure within the next few weeks.

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. The charity employs 490 people. IBS-STL UK, formerly known as Send The Light, was founded in 1962 and is now one of the top 100 charities in the UK. The International Bible Society dates its origins back to 1802. The group was renamed Biblica in 2009, and is based in Colorado Springs. It had revenue of almost $70m in 2008. Biblica said the planned sale of the UK operations would not impact its other global operations.

Michael Fitch, chairman of the IBS-STL UK Board of Trustees, added: “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.” Weekly meetings will now be held with the workforce to keep employees informed of the situation.

Tags: News

This entry was posted on Wednesday, November 18th, 2009 at 11:11 am and is filed under Webmaster's Ramblings. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.