Is Baker & Taylor Too Important to Fail?
According to this morning’s ShelfAwareness, Baker & Taylor is identified as a company at high risk of default or bankruptcy. Other than Ingram, B&T serves as the primary distributor of books in the U.S. and the world. B&T apparently has a high debt load.
As can be seen by the Anderson News fiasco, a distributing company that defaults or goes bankrupt in this climate can have very negative consequences on the publishing market. Assuming that B&T’s major creditors are the publishing houses, will the publishing houses have an incentive to prop up B&T until it can work its way out of its financial doldrums?