Editing Western Publishing (section)

===1990s===

In 1990, sales dropped to $508 million and earnings fell to $23 million. Analysts attributed some of this decline to falling sales of [[Pictionary]], a popular Western board game introduced in 1985. Sales fell from $118 million to $42 million. In fiscal 1991 (ending January 31, 1991) sales had declined to $491 million with earnings of only $8 million. By late 1991, Western's share price had dropped to $9 from a high of $28.<ref name="WPGHistory" />

In 1992, Western celebrated the 50th anniversary of the introduction of [[Little Golden Books]] publishing a [[box set|boxed set]] of the twelve original titles for $19.95. Special editions of all-time favorites, and new books by popular artists and illustrators of children's books were also published to mark the occasion. The Golden Little Nugget Book line was introduced and sold more than 1.9 million units in six months. Golden management decided to publish trade books for children for the first time in 1993. These titles were published under the imprint Artists and Writers Guild Books and sold in general book and toy stores.<ref name="WPGHistory" />

Western's net sales recovered in fiscal 1992 to $552.4 million with net income of $13.7 million, and $649.1 million with $17.5 million net income in 1993. In 1993, Western decided to close the advertising specialty division and took a $21.8 million [[Write-off|writedown]]. A further $10 million was spent setting up and running bookstores in [[Toys "R" Us]] stores; the company decided ultimately to run the departments itself. Bernstein wanted to sell Western's products in discount stores and supermarket and drugstore chains and spent $20 million to do so. The school book club, started in 1990, also lost money. The net effect was a $55.8 million loss on sales of $613.5 million for fiscal 1994 (ending January 1994).<ref name="WPGHistory" />

Three Golden Books Showcase Store locations were opened, which featured only Western Publishing products.{{citation needed|date=August 2012}} The first was opened in the [[Woodfield Mall]] in [[Schaumburg, Illinois]], in November 1992; the second in [[Universal CityWalk|CityWalk]] Center outside [[Universal Studios Hollywood]] during June 1993; and the third store was opened in [[Rockefeller Center]] in New York City during April 1994.<ref name=WPGHistory/> They have all since closed.  By the mid-1990s, most of its printing plants were closed and its print operations consolidated in Racine.{{Citation needed|date=March 2015}}

These losses raised Western's debt to $250 million; its negative cash flow caused its bonds to be downgraded to [[High-yield debt|junk]] status. Unable to sell the company, Bernstein began a major restructuring of Western. Hasbro Inc. purchased the  games and puzzles division for $105 million and the Fayetteville distribution center which handled them was put up for sale. Troll purchased the school book club division for $4.3 million. Ritepoint and Adtrend, parts of Penn Corporation's advertising specialty division, were sold as was its direct-marketing continuity-club business. Staff was reduced by 28 percent. Bernstein continued the concept of developing book sections within stores and introduced 100 Just For Kids sections in [[Walmart]] locations which sold video and music along with books.<ref name="WPGHistory" />

Western lost $11.6 million on revenues of $303.9 million during the first three quarters of 1994. Its common stock, which had traded as high as $21 a share in 1993, had fallen to below $10 in April 1995. No dividend had been paid since the company had been acquired by Bernstein from Mattel in 1984. At this point he owned or controlled nearly 20 percent of the common stock, the [[Mario Gabelli|Gabelli Group]] held about 17 percent, and [[Prudential Financial|Prudential Insurance Company of America]] owned 8.6 percent. Long-term debt was $249.8 million.<ref name="WPGHistory" />

By mid-1996, under the supervision of ex-Simon & Schuster executive [[Richard E. Snyder]], it was renamed Golden Books Family Entertainment<ref name=golden/>{{rp|213–214}} and focused on publishing children's books. Bernstein resigned all his positions at the company but retained his stock.<ref>{{Cite news |last=Tabor |first=Mary B. W. |date=February 1996 |title=Western Publishing Gives Snyder an Equity Stake |work=[[The New York Times]] |url=https://www.nytimes.com/1996/02/01/business/western-publishing-gives-snyder-an-equity-stake.html |access-date=August 17, 2015}}</ref> It sold the adult books ([[Golden Guide]]) to [[St. Martin's Press]] in 1999.<ref name="GoldenGuides">{{cite web |title=Golden Guides from St. Martins Press |url=http://us.macmillan.com/series/AGoldenGuidefromStMartinsPress |access-date=August 16, 2015 |website=us.macmillan.com |publisher=Macmillan}}</ref>