Scholastic is making big changes to ensure that its book fairs aren’t just a relic of Zillenial memories.
What happened: Scholastic is selling its downtown Manhattan headquarters to the company that owns the Empire State Building for US$386 million, trading in swanky Broadway offices for a quick shot of liquidity as it undergoes a bold restructuring effort.
The company is also offloading its main distribution centre, located in Jefferson City, Missouri, to Fortress Investment Group for $95 million.
Catch-up: Things have been soap opera-like at Scholastic since controlling shareholder Dick Robinson Jr. died in 2021. In a shocking move, he left his stake not to his family, but to Toronto native Iole Lucchese, a top exec (and Robinson’s alleged former romantic partner).
Meanwhile, Scholastic has burned through money as sales slump. Between fiscal 2021 and 2025, its cash and cash equivalents fell from $366.5 million to $124 million.
Why it matters: From The Hunger Games to Captain Underpants, Scholastic is the world’s largest publisher and distributor of children’s literature, and its struggle to move books is indicative of the broader struggle to get kids reading.
Scholastic’s own research has shown a troubling trend where positive sentiment towards reading drops as kids grow up, with substantial declines starting at age nine.
What’s next: As part of its reinvention, Scholastic is trying to get kids into books by meeting them where their eyes are usually fixed: screens. Last year, it acquired Toronto’s 9 Story Media Group to expand its media footprint, and launched a streaming service this year.—QH