From Deseret News archives:

Deseret Book buys 2 top competitors

Covenant, Seagull bought without layoffs or closures

Published: Friday, Dec. 29, 2006 12:08 a.m. MST
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"What we've done is typical of both the publishing and retail industries, both of which Deseret Book has been involved with for years now," Dew said, pointing to examples like Nordstrom, which operates Nordstrom and Nordstrom Rack, as well as the many divisions and labels at publishing houses like Doubleday.

Looking at Seagull and Covenant, Dew said Deseret Book saw a way to reach more customers and a wider market.

"We knew Covenant well, because they've been our competitors for years," Dew said. "They're strong, and they've tended to be strong where maybe we're not as strong. Each of us has our unique strengths, and this (deal) allows us to expand our ability to reach a broader array of customers, both as a publisher and a retailer."

For Seagull or Deseret Book customers concerned about what effect the acquisition will have on the operations at the respective companies, Dew and Kofford sent their assurances.

"Why would we buy them, only to change them and have them be us?" Dew said. "For those who like Seagull, I'm happy to reassure them that Seagull will be Seagull, and that's just how it is. We're certain that there's a place in the market for both (Seagull and Deseret Book, Covenant and Deseret Publishing), and that they'll both do very well."

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"The plans and projections that they represented to me are to keep the companies in place," Kofford said. "I also happen to be the landlord here (at the company's flagship store on Redwood Road), and they've signed long-term leases. So it looks to me that they're serious and intent on keeping them separate.

"I don't see that there will be any change" in terms of operations or product quality, he said. "I've built a really strong management team in each of the companies, and they're staying in place in the same facility. It will be business as usual."

As for Kofford? He'll be concentrating on other things.

"I'm going to work hard at being a full-time grandfather," he said. "I have 25 grandchildren."

Deseret Book, like the Deseret Morning News, is a wholly owned subsidiary of Deseret Management Corp., the holding company for businesses owned by the LDS Church.


E-mail: jnii@desnews.com

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I'm not surprised. Historically Deseret Book has not met competition...

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