80 Laid Off Employees Called a “Shift in Strategy” by CEO

Advanstar CEO Joe Loggia

Advanstar CEO Joe Loggia

Business-to-business publisher Advanstar Communications (MODERN MEDICINE, HOT AUTO PRODUCTS, DERMATOLOGY TIMES) has reached an agreement with its lenders to eliminate $385 million in debt.  The company’s current majority stakeholders, private equity firm Veronis Suhler Stevenson and hedge fund sponsor Anchorage Advisors, also added $35 million in new capital.  However, the company still carries $505 million in legacy first lien debt, according to an interview with CEO Joe Loggia by foilomag.com.

In that interview Loggia was asked about a recent round of lay-offs and answered: “We’ve been in the process of implementing the new strategic plan that I’ve mentioned.  You can’t really categorize things as layoffs when they’re more of a shift in strategy.  [While there were layoffs] you have to remember that it’s in context that we’ve had some geographic shifts in strategy and a shift in strategy in regard to our product portfolio.”

Loggia did not give any details of the new strategy but one of the many posts commented about the company reorganization: “Graphic design is being consolidated and moved to Duluth, MN to be aligned with production.  Instead of having their own editorial staffs, many magazines will draw from a pool of editors shared with other pubs.”

You can read more about Advanstar on foliomag.com here and here.

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