On Sept. 11, Longmont, CO-based multititle cataloger Concepts Direct sold its most profitable title, stationery mailer Colorful Images, to Colorado Springs, CO-based competitor Current USA, a division of billion-dollar conglomerate Taylor Corp.
Though Concepts Direct president Phillip Wiland won’t discuss the terms of the deal, he says that growth among the company’s other catalogs — specifically gifts books Linda Anderson and Music Stand — will make up for some of Colorful Image’s lost revenue. “We received an offer for Colorful Images that was in everyone’s best interests,” Wiland says.
Indeed, according to a source familiar with the company, the cash from the sale will help extricate Concepts from its onerous lease on its Longmont headquarters. But the source is skeptical as to how much Concepts Direct’s other brands can compensate for the loss of Colorful Images, which has estimated annual sales of $30 million. “That was the title that paid the bills, paid the rent, and paid the salaries,” says the source, who spoke under condition of anonymity. In comparison, Linda Anderson brings in an estimated $8 million a year.
Concepts Direct, which Wiland founded in 1992, hasn’t had a profitable year since 1997. Its other gift and stationery catalogs include Garfield Stuff, Colorful Characters, and New Bargains. In December 2002, the company solicited bids from potential buyers, but no deal was finalized. Last April it announced that its board of directors had approved a measure with the Securities & Exchange Commission to delist its common stock.
Colorful Images’ new corporate parent, North Mankato, MN-based Taylor, has estimated annual sales of $1.26 billion. In addition to Current, Taylor owns more than a dozen other titles, including specialty paper catalog PaperDirect, human-resources supplier G. Neil, and meetings products mailer Successful Events.