Publicly Held Printers Caught in Stormy Seas —Michelson
North of the border, Quebecor World continues to reel from a string of poor financial results. The latest cost-cutting moves there entail a five-point transformation plan to rejuvenate the organization's lagging performance and balance sheet, which calls for another round of plant closures and head count reductions throughout its global platform.
After pondering a range of strategic options, including a possible sale of the company, Consolidated Graphics can't find a dance partner and continues on its aggressive acquisition track. Valassis struck a $1.3 billion deal for ADVO, but is now backing out claiming financial fraud and internal control deficiencies.
Capturing even more attention, Cenveo, led by kingpin Bob Burton, has embarked on an unsolicited takeover bid of Banta. The jury, for now, is still out on Burton's latest move.
Undoubtedly, boardrooms within several of these industry stalwarts are abuzz with M&A and cost-cutting discussions, inquiries are pouring in from uneasy clients and, sadly, talented workers are updating resumés. These venerable establishments deserve better.
Mark T. Michelson