Magazine distributor NDD closes its doors
Magazine distribution in Australia is to become a two horse race with the Michael Hannan-owned NDD closing its doors.
The market now features just two large distributors – Gordon & Gotch and the ACP-owned Network Services.
Publishers were told in a note from NDD:
Dear Publisher,
Changes at NDD
As a consequence of a recent significant reduction of distribution volumes, IPMG (NDD’s parent
company and shareholder) has reluctantly taken the decision to wind down the NDD business.
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 today.
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.
We will be in touch again shortly, to discuss this announcement in more detail.
Michael Hannan came to prominence as a printer. He later took over FPC magazines which her later sold to News Ltd. His main businesses are now in the digital space after his company IPMG took full ownership of the struggling Blue Freeway group.
Writing in the Newsagency Blog, Mark Fletcher warned:
“The closure of NDD reduces choice and has the potential to see newsagents face tougher magazine supply terms.”
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I worked at NDD for five years, it is an exceptional team of people. NDD pioneered many innovations in he magazine industry including a solution to the GST.
This is sad news for the industry and in particular for publishers and retailers.
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