Book distribution company (AMS) files for bankruptcy. Losses huge.
By Jane • Dec 29th, 2006 • Category: Publishing News • •Advanced Marketing Services, Inc. is a book distributor to warehouse clubs, speciality retailers, e-commerce companies, and bookstores.
The Group provides product selection advice, specialized merchandising and product development services, distribution and handling services to membership warehouse clubs. Via Business.com
This morning, Publisher’s Weekly reported that AMS is filing for a Chapter 11 restructuring. Chapter 11 allows the business to basically refinance its debts by either discharging them (which means that the company doesn’t have to repay the debt) or restructuring the debt. It’s debts owed are meaningful:
- Random House, which is owed $43.3 million
- Simon & Schuster, Penguin and Hachette Book Group are all owed more than $20 million each
- HarperCollins is owed $18 million
Although the bankruptcy filing says money will be available to pay unsecured creditors, Rautenstrauch said at this point he wasn't sure how much unsecured creditors will be paid. It is also not clear when any payments will be made.
via Publisher’s Weekly.
Jane is a long time romance reader whose passion is, you guessed it, reading. Jane also does not like to talk about herself in the third person, but apparently this is the way that this biography thing works (although in a true biography, someone else would be writing this blurb). Anyway, currently Jane loves urban fantasy authors Patricia Briggs and Ilona Andrews. She's really excited about this year's crop of historicals including Joanna Bourne's The Spymaster's Lady and Sherry Thomas' Private Arrangements and the upcoming Loretta Chase Her Scandalous Ways.
She's looking for a good contemporary author. Email her with a recommendation!
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[...] to its books. The margins for ebooks are higher with fewer distribution costs (Random House was owed $43.3 million by the bankrupt AMS), shipping, and printing [...]