Book distribution company (AMS) files for bankruptcy. Losses huge.

JanePublishing NewsAMS / Bankruptcy / publishing-costs1 Comments

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

Jane Litte is the founder of Dear Author, a lawyer, and a lover of pencil skirts. She self publishes NA and contemporaries (and publishes with Berkley and Montlake) and spends her downtime reading romances and writing about them. Her TBR pile is much larger than the one shown in the picture and not as pretty. You can reach Jane by email at jane @ dearauthor dot com

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