Wildfires Taking Toll on Booksellers, Publishers (publishersweekly.com)

Houghton Mifflin Harcourt announced a strategic restructuring to accelerate its digital transformation and align its cost structure with its digital first, connected strategy. These steps will further streamline operations and better enable HMH to support teachers and students with digital first, connected solutions that drive successful outcomes in remote, face-to-face and hybrid learning environments.“The actions we announced today will help us to realize our digital first vision by creating a more focused company with increased recurring digital subscription revenue that produces higher margins and free cash flow. We recognize the personal impact these actions will have on our HMH team members. We thank our departing colleagues for their contributions and are committed to treating them in a respectful and compassionate way.” Joe Abbott, HMH’s Chief Financial Officer added, “The actions we’re taking are intended to drive billings growth, position us to build our recurring subscription revenue base, simplify and strengthen our business model, reduce costs, and generate sustained and positive free cash flow." The Company’s restructuring includes both labor-related and non-labor expense reductions. The labor-related reductions involve organizational changes resulting in a 22% reduction of HMH’s workforce, including positions eliminated as part of the previously announced Voluntary Retirement Incentive Program and net of newly created positions to support HMH’s digital first operations.

Tribune Publishing Company, which is now in the process of being acquired by Alden Global Capital, increased its digital revenue by 57%, or $16.5 million, in 2020 YoY, and the number of its digital-only subscribers by 30.5% to 436,000. But those gains only partly offset an overall revenue decline to $746 million, versus $945 million in 2019, and a loss from continuing operations of $46.8 million, up from $7.1 million in the prior year, according to financial results released on Thursday. The overall hit was also mitigated, in part, by a 14.5% reduction in operating expenses, or $138.1 million.

Bookstore sales took an unprecedented plunge in April, tumbling 65.3% compared to April 2019, according to preliminary estimates released by the U.S. Census Bureau. April sales fell a total of $412 million from 2019, dropping to an anemic $219 million. In March, bookstore sales fell 33.4% compared to a year ago. March sales were $392 million, meaning April sales declined 44.3% from March to April. Total retail sales dropped 19.4% in April compared to 2019 after falling 6.6% in March from 2019.