Star Tribune wants out of the direct-mail business
The beleaguered Star Tribune wants to cut down to core business interests, which means jetissoning its direct-mail business.
On Tuesday the Star Tribune Co. asked for permission in New York bankruptcy court to transfer its direct-mail assets to Impact Mailing of MN Inc.
As part of the proposed deal, the seven workers in the division get to keep their jobs.
The article on Law360 (reg. req.) says bailing out of the direct-mail business was the Strib's plan even before it lurched into bankruptcy:
"Several months prior to the commencement of their Chapter 11 cases, the debtors had concluded that the sale of the direct-mail assets was appropriate and consistent with their desire to return to core operations and dispose of revenue-losing business," according to the motion.
The Tribune argued to the bankruptcy judge that holding a public sale or bidding process on the direct-mail assets would cause delays and expense.
The pool of potential buyers is relatively small because they must be based locally, the motion pointed out. "The local market is serviced by relatively few providers, and thus potential buyers. Therefore there is little to be gained from incurring the additional expense of a complicated bidding process," the motion stated.
The Tribune's direct-mail services entail mailing targeted advertising to residents and businesses