Total Sports Publishing is in financial straits for the second time in just over a year, as a planned sale to Ballantine Books fell through recently at the last minute.
The company, formerly part of the Total Sports Internet company and bought out by friendly investors late last year, was on the cusp of a purchase by the Random House division when Ballantine backed out shortly before the Nov. 30 closing date, according to John Thorn, Total Sports Publishing's publisher.
"We were already plugged into the Random House payroll system," Thorn said.
Thorn wants the company reborn but is more concerned about the debts. "Our moral as well as legal obligation is to take care of our creditors to the maximum extent," he said. Thorn said Chapter 11 reorganization is "in our future" as part of preparations for any purchase.
The staff of eight has been cut to two as Thorn shops the company. He said several companies — media-based and otherwise — are "kicking the tires."
But the situation is dire. Despite having two recent books on The New York Times best-seller lists, the company suspended operations in the fall to stop the cash drain in preparation for the Ballantine purchase. The company typically had 40 active titles when it was at full strength, Thorn said.
He wouldn't discuss current debt or asking price. "All I can say is the value of our inventory in warehouse, let alone the value of our contracts and the staff's expertise, is way beyond the price we're looking to fetch," he said.
Ballantine did not make executives available for comment.
