CBS Dissolves Its Columbia Group Segment

Anticipating its recently announced intention to sell its musical instruments division, CBS Inc. has dissolved the group to which the division reported, a spokeswoman for the New York-based entertainment conglomerate confirmed Friday.

CBS spokeswoman Anna Schneider said dissolution of the Columbia group, one of the company’s four groups, went into effect Tuesday. She added that the group’s remaining piece, CBS Toys, will operate as an independent division and continue to be headed by Ben Ordover.

Ordover, who formerly reported to the president of the Columbia group, now reports to Fred Myer, a senior vice president and chief financial officer of CBS, she said.

Former Columbia group President Tom Kirwan has begun working on “special corporate projects” with CBS Chairman and President Tom Wyman, Schneider said. She said a memorandum from Wyman about the staff changes was distributed to CBS employees Tuesday.

Not Reported Separately

The Columbia group posted a $15.7-million loss in 1983 and an $11.5-million loss for the first nine months of 1984, according to the latest figures released by CBS. The group accounted for about 8% of the company’s $4.5 billion in sales in 1983.

Under CBS policy, the earnings of individual divisions are not reported separately, but the company said both the toy and musical instruments divisions showed losses in 1983.

However, CBS did blame the Columbia group’s poor performance for the first nine months of 1984 primarily on losses in the musical instruments division, which has eight companies, including Fender Musical Instruments of Fullerton and piano maker Steinway & Sons.

Columbia group’s statistics for the last quarter of 1984 are not yet available. CBS officials said Dec. 3 that the company would sell the instruments division but has no intention of selling its toy division.

With the Columbia group eliminated, CBS is left with three organizational groups--broadcast, records and publishing.