Newsline

Hard Times at Hanover
Hanover Direct Inc., Weehawken, NJ, has eliminated 285 positions – over 10% of its work force – and will discontinue three catalogs and close several business units. The job cuts represent $26 million in annual payroll and non-payroll savings, and will result in a one-time charge of $8.6 million. Hanover will drop its Turiya, Kitchen & Home, and Kitchen & Garden catalogs, incorporating some of the offerings into its remaining catalogs. The firm will also shutter its Always in Style and Desius business operations, and close its leased fulfillment and distribution center in Maumelle, AR. Hanover will continue such catalogs as The Company Store, Domestications, Improvements, and Silhouettes.

MSGI Explores Sales Option
Marketing Services Group Inc., New York, has retained financial adviser Goldman Sachs to explore options including the sale of the company or investment in MSGI by a partner. The objective is to maximize shareholder value. MSGI has also accepted an offer from Naviant Marketing Solutions Inc. to acquire WiredEmpire, its majority-owned subsidiary. WiredEmpire began looking for a new parent company last September when it disclosed that it had begun to lay off most of its staff. The sale to Naviant Marketing Solutions, a subsidiary of Naviant Inc., will include WiredEmpire’s e-mail marketing products, and hardware and software assets.

Disney to Trash Toysmart List
The Walt Disney Co. has purchased Toysmart.com’s customer file for $50,000 and intends to destroy it. Toysmart attempted to auction off the 250,000-name file last summer during bankruptcy proceedings, but the move was blocked by the U.S. Bankruptcy Court for the District of Massachusetts after lawsuits alleged that the sale would violate Toysmart’s posted privacy policy. The policy stated that the firm would not share customer information. Disney owned a 60% share in Toysmart, which sold educational toys online.

Italian Firm Acquires NetCreations

SEAT Pagine Gialle, an Italian yellow pages directory publisher, plans to buy NetCreations, New York. The all-cash transaction calls for NetCreations shareholders to receive $7 per share of NetCreations stock held, bringing the total value of the transaction to $111 million. The acquisition will allow the 25 million opt-in European addresses held by Consodata, a French subsidiary of SEAT Pagine Gialle, to be housed alongside NetCreations’ 22 million double-opt-in e-mail names. Between 5% and 10% of NetCreations’ e-mail addresses are believed to be held by European consumers. NetCreations had been prepared to be bought by DoubleClick in an all-stock transaction for $166 million. But the decline of DoubleClick’s stock in recent weeks drove the purchase price way down – to $59 million. NetCreations will pay DoubleClick an $8.6 million fee for breaking the original purchase agreement.

Charles Marro Dies at 36
Charles Marro, senior vice president of direct sales at ALC of New York LLC, died Dec. 27 of a heart attack while vacationing in Portugal. He was 36. Marro joined the firm in 1998, shortly after its founding. Prior to that he worked for Hugh Dunhill and The SpeciaLists. “It is a terribly sad time here,” said ALC of New York CEO Andy Ostroy in a statement. “Besides being a cornerstone of our corporate success, Charlie was, more importantly, so loved by so many on a personal level. We feel like we’ve lost a member of our family.”

Engage Cuts Jobs and Restructures
Engage Inc., Andover, MA, will trim about half of its work force (550 jobs) and reorganize its business to better manage expenses. The reductions, which could translate to up to $150 million a year in savings, will enable the firm to break even by the end of the fourth quarter, the company said. Engage will focus on designing and selling interactive software, which has higher gross margins than its other businesses. In addition, its five divisions will be consolidated into two – software and media.

Coldwater Creek Names a New Chief Exec
Coldwater Creek, Sandpoint, Idaho, has named Georgia Shonk-Simmons CEO, with overall responsibility for day-to-day management of the business. Former CEO Dennis Pence, the cataloger/retailer’s co-founder, will retain responsibility as board chairman and will continue to set overall strategy. Shonk-Simmons joined the company as vice president and director of merchandising in 1998, and a year later was named president of the catalog and retail sales division.

Bigfoot Scales Back Management Services
Bigfoot Interactive, New York, has laid off 40 people, equivalent to some 30% of its staff, in an effort to trim its list management business. The decision was made in reaction to a slowing economy, said Bigfoot CEO Jim Hoffman. Bigfoot manages lists that together total around 15 million names, and has about a dozen management clients.

NH Bill Protects Privacy
Legislation introduced last month would prohibit the state of New Hampshire from posting residents’ personally identifiable information on the Internet. Republican Rep. Neal Kurk, who sponsored the measure, also advanced a bill creating a state office of privacy. Kurk said his proposals are designed to ensure “that individually identifiable information provided to or gathered by the state is used solely for which it was obtained.” This information includes names, addresses, telephone numbers, Social Security numbers, and driver’s license and vehicle registration data.

Avon Names Kropf
Avon Products Inc., New York, has promoted Susan J. Kropf to the newly created position of president and chief operating officer. Kropf will be responsible for the company’s worldwide direct selling operations. She had been executive vice president and COO for North American and global business operations.

Disney to Trash Toysmart List
The Walt Disney Co. has purchased Toysmart.com’s customer file for $50,000 and intends to destroy it. Toysmart attempted to auction off the 250,000-name file last summer during bankruptcy proceedings, but the move was blocked by the U.S. Bankruptcy Court for the District of Massachusetts after lawsuits alleged that the sale would violate Toysmart’s posted privacy policy. The policy stated that the firm would not share customer information. Disney owned a 60% share in Toysmart, which sold educational toys online.