Exclusive Q&A With Quebecor World Magazine Division President Doron Grosman
Quebecor World’s (QW) recent filing for bankruptcy protection has been well documented throughout both the mainstream and b-to-b media. Publishing Executive Inbox spoke with the company’s president of its magazine division Doron Grosman about the effects of the reorganization on its magazine customers, how the company finds itself in its current state, and the long-term prognosis of Quebecor World.
INBOX: How, if at all, are QW’s magazine customers being affected by this situation and might QW’s magazine business take a new shape going forward?
DORON GROSMAN: QW Magazine customers, as well as those in our other divisions, are unaffected by the reorganization. Our plants are all fully operational and our commitments to our customers are being fulfilled. We’ve received an extraordinary level of support from the magazine industry, including some personal notes from customers to our plant personnel and management expressing their loyalty. Many customers recognize that QW is an integral part of the history of many magazines, and its continued strength is important to the industry.
INBOX: How do the company’s European assets fit into its plans?
GROSMAN: We were unsuccessful in the sale of our European assets this past December, although that deal was approved by the European Union which paves the way for another possible transaction. This week we announced that our UK subsidiary, Quebecor World PLC, is being placed into administration. The European printing market has significant challenges from multiple fronts.
INBOX: How much of the current financial situation QW finds itself in can be attributed to the decline of the U.S. dollar?
GROSMAN: The decline in overall printing volume, due to falling readership and advertising, is the most significant factor. Many parts of the industry are experiencing disruption due to the dramatic changes taking place in the magazine business.
INBOX: Who are some of the largest creditors and what do they anticipate to see under this reorganization plan?
GROSMAN: The publicly available documentation from the court hearings lists the 60 largest creditors, both investors and suppliers. The anticipated payout upon reorganization is not clear at this stage and will take many months to become clear, as is common practice in these types of proceedings.