BNA Subsidiaries in Bankruptcy Act Proceedings.
BNA Subsidiaries LLC, parent of Institute of Management & Administration and Kennedy Information Inc., is in Bankruptcy Act proceedings.
BNA Subsidiaries itself is a subsidiary of Bureau of National Affairs, the long-time Washington publisher of essential regulatory information in a number of areas.
Court filings indicate BNA Subsidiaries generated a net operating loss of $1.8 million on revenue of $23.2 million. The filings also say the unit had reduced its workforce and divested some products, filings say, but BNA Subsidiaries "continues to experience financial losses and continues to incur expenses that are beyond its ability to self-fund and that negatively affected its financial performance."
BNA had funded Subsidiaries' operating losses, but has decided it will no longer provide unsecured funding and/or equity infusions "in light of, among other things, market weakness for the Debtor's products and product lines."
In addition, BNA Subsidiaries is facing a class-action lawsuit seeking to recover $15 million arising from alleged violations of the Telephone Consumer Protection Act.
Subsidiaries has also been sued by former independent contractors asserting damages from "wrongful denial of benefits and alleged improper payment of Subsidiaries' share of taxes for FICA and Medicare."
The parent BNA is the largest single creditor, being owed $2 million by its subsidiary.
Kennedy Information was founded by Jim Kennedy. It originally published a directory of executive search firms. Like the Yellow Pages, the Kennedy "Red Book" sold ads to the firms listed in the directory. The ads ranged from bold-face listings to large space ads. Kennedy added newsletters for the search industry and consultants and some smaller directories.
Kennedy sold the business for $2 million to an investment group led by Wayne and Marshall Cooper. Wayne Cooper is a former president of Specialized Information Publishers Association. The Coopers broadened the product line to include consulting, research reports and additional newsletters. And they went from focusing on recruiting to providing information for investor relations professionals.
After launching a recruiting conference focused on online recruiting, the Cooper brothers sold Kennedy Information to BNA for $47.7 million. At the time, Kennedy Information had revenue of about $10 million.
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|Title Annotation:||Bureau of National Affairs|
|Publication:||The Newsletter on Newsletters|
|Date:||Jan 10, 2011|
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