InfoUSA Trims Staff
InfoUSA Inc. has eliminated 325 jobs and significantly reduced its online activities. The Omaha, NE database marketing company also cut 63 positions at its online subsidiary, InfoUSA.com. The other reductions were spread among administrative and support staff, as well as employees who managed underperforming units. In a statement, the firm said the reductions would allow Infousa.com to make a profit in the first quarter of 2001. It has also closed its VideoYellowPages.com division, and has scaled back its BusinessCreditUSA.com unit. InfoUSA had incorporated ListBazaar.com, which specialized in mailing lists, into its small business group on Dec. 1. The database marketer said it would take a one-time restructuring fee to cover severance and other non-recurring expenses, but it did not release an estimate of the required amount. However, when the firm terminated relations with 244 employees in 1998, it reported a $1.2 million charge, including $600,000 in severance packages.
* Fancy Foods Will Be Sold Gourmet Group Inc., a food marketing company in Buda, TX, will acquire Fancy Foods Gourmet Club, a gourmet food catalog and Internet-based mail order house. Fancy Foods (www.ffgc.com) offers hard-to-find gourmet foods via catalogs and on the Internet. It reportedly has more than 6,000 customers and approximately 85,000 catalog requesters.
* J.F. Hudetz Dies at 80 John Francis Hudetz, founder and chairman emeritus of Solar Communications in Napierville, IL, died Dec. 13 of cancer at age 80. Hudetz started the company as J.F. Hudetz & Sons in 1961. In addition to his work, he was active in community affairs; he served as alderman in Warrenville, IL. He is survived by his wife, Gwendolyn; 11 children, including chairman and CEO Frank Hudetz, Peter, who is vice president of operations, and Leo, who works in the firm’s accounting division; and 37 grandchildren.
* Dimac, Creditors Settle on Reorganization Dimac Corp., the St. Louis-based direct marketing agency, has reached an agreement with its major creditors on a restructuring plan they had provided. Dimac and its subsidiaries filed for Chapter 11 reorganization on April 6, 2000. The plan was approved last month by the United States Bankruptcy Court in Wilmington, DE. The company anticipates emerging from bankruptcy this month, subject to the sale of several of its business units. At that time, its total debt will be reduced from $391 million to $122 million plus $31 million in preferred stock. The firm’s annual cash interest expense will be lowered from more than $39 million to under $10 million, it said.
* Nordstrom.com Kills Catalogs, Cuts Staff Nordstrom.com, the catalog and Internet subsidiary of Seattle’s Nordstrom Inc., is eliminating two of its four catalogs to encourage profitability. The company is also laying off 35 employees who work in the division-a 3% reduction in employment at the site. Merchandise from the two catalogs will be consolidated into its two most established titles: Lifestyle and Clothes for Life. The firm said that fewer catalogs will decrease circulation, printing and production expenses.
* Equifax Buys Compliance Data Center Equifax, the Atlanta-based credit bureau and information compiler, has purchased Compliance Data Center Inc. for approximately $10 million in stock. Equifax said that the acquisition enables it to further extend its product reach and penetration into the online brokerage field.
* Hanover Direct CEO Abruptly Departs Rakesh Kaul, CEO of Hanover Direct Inc., Weehawken, NJ, resigned his position suddenly last month. He has been replaced by Tom Shull, who has been named president and chief executive officer. Shull will be responsible for the company’s day-to-day operations, including business development and strategic planning. Previously, Shull held senior management positions at several companies including idealab!, Federated Department Stores and Merry-Go-Round Enterprises.
* IiGroup to Buy TargitMail IiGroup Inc., Boca Raton, FL, has signed a letter of intent to acquire privately held e-mail marketing company TargitMail. The deal is contingent upon due diligence by both parties as well as additional capital to be raised by iiGroup. TargitMail, a privately held e-mail marketing company based in Portsmouth, NH, is owned by Global Technology Marketing International Inc. TargitMail’s sales increased from approximately $2 million in 1999 to about $7 million in 2000. Projected sales of more than $20 million for 2001 are expected to bring the firm to profitability, the company said. Last October, TargitMail abruptly canceled plans to exhibit at the Direct Marketing Association fall conference. It cited a need to cut costs and attain profitability.
