SYDNEY: Magazine distributor NDD, part of the Hannan family-owned Independent Print Media Group (IPMG), has announced the company will be wound up after failing to find a buyer.
The company - the third largest magazine distributor in Australia behind the ACP-owned Network Services and Gordon & Gotch - was facing pressure following the decision by News Magazines last year to switch its distribution arrangements to Gordon & Gotch. The switch led to a reduction in distribution volumes.
News Magazines changed its distribution arrangements in December 2009, two years after it took charge of magazine publisher FPC in 2007, which was previously owned by IPMG.
NDD had been looking for a buyer in recent months, but negotiations with interested parties failed to end in agreement.
The closure leaves just two large magazine distributors - Gordon & Gotch and the ACP-owned Network Services.
NDD managing director, Mark Darton, said in a statement to publishers: "It is NDD’s intention to manage the process in an orderly fashion as magazine product in the system works its way through the retail channel. Newsagents and supermarkets have been advised of the decision.
"We would like to assure you that NDD and its parent company IPMG, will continue to collect retail sales proceeds on your behalf and will guarantee any publisher payment liabilities in accordance with contracted terms. We make the commitment that all NDD distributed magazines will be delivered in accordance with on sale schedules until a completion date is determined and notified. This will ensure the timely reconciliation and finalisation of your trading account with NDD."
NDD did not return calls at the time of writing.
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