• by Ken Liebeskind , July 9, 2001

It's not just dot-coms going down the tubes. Late last week, Dimac Direct, one of the leading direct marketing agencies, shut its doors.

Dimac Marketing Partners (DMP), parent company, put a spin on the news, saying the company is pursuing a "new strategic direction," that could involve a sale or new equity investor. Only at the bottom of the announcement did it state that Dimac Direct is closing, with the company trying to sell its assets to stop operating losses.

A call to Dimac Direct's main office in St. Louis was answered today, but no information was provided. The call was referred to Kekst & Company, Dimac Marketing Partners' public relations office, which sent the release confirming the closing.

Noone would comment at Dimac Holding, the Atlanta company that owns DMP.

Dimac Direct ranked 11th among direct marketing agencies in terms of revenue in 1998 with $452 million in billings. Its customers included AT&T, American Express and Chase Manhattan Bank. It operated as a full service direct marketing agency, with creative, list and mailing services. It was reported that the company mailed 1.7 billion pieces per year.

1998 must have been the banner year because Dimac Direct's profits fell by $32 million in 1999. DMP filed for Chapter 11 bankruptcy last April, with high debt and lower profit margins reported. Heavy job cuts were reported at the time.

The company emerged from bankruptcy proceedings in March, but closed Dimac Direct in an effort to benefit the whole company, which includes three major subsidiaries: DMW Worldwide, MBS and Palm Coast Data. The companies provide different direct marketing services.