Quebecor World Closes Magog; Signs Contracts
MONTREAL—Should Quebecor World emerge from bankruptcy in good shape, it will likely remember those entities who stuck by its side. . .as well as those who turned their backs on the venerable printer.
That turnaround faces a treacherous road, for now. Quebecor World has opted to close its Magog, Quebec facility. The plant produced magazines and retail inserts for the U.S. and Canadian markets. About 300 full-time jobs will be lost, including 200 positions already on temporary layoff, which will be made permanent.
On the plus side, it received final approval for US$1 billion debtor-in-possession (DIP) financing. The financing is comprised of a term loan of $600 million and a revolving loan facility of $400 million.
In other company news, Quebecor World has been awarded a new contract with The McGraw-Hill Companies extending into 2014. The new agreement is valued at approximately US$285 million over its term and covers a wide range of educational textbooks, ancillary products, professional learning tools and catalogs.
The printer’s Magazine Group signed renewal and new business agreements that will add 33 new titles to the company’s Targeted Publications platform. Included is a multi-year agreement to print 16 magazine titles for Meister Media Worldwide, a leading agricultural publisher based in Cleveland. The printer also secured a new multi-year pact to print 100 percent of a nine-title portfolio of magazines published by Stamats Business Media of Cedar Rapids, IA.
Other pacts include a multi-year renewal agreement with Affinity Group to print all of the publisher’s 30 magazine titles. Quebecor World also reached a multi-year deal to print two weekly magazines for Amos Publishing of Sidney, OH—Coin World and Linn’s Stamp News.
However, its own parent, Quebecor Inc., may switch to another printer to handle some of its magazine titles. Publications TVA, Quebec’s largest consumer magazine publisher, is considering entering into printing agreements with rivals of Quebecor World for a handful of publications, says a Quebecor spokesman. The spokesman cited “practical and logistical reasons” being mulled. No decision has been made, and the vast majority of TVA publications will continue to be printed by Quebecor World.