walkitout (walkitout) wrote,
walkitout
walkitout

Borders bankrupty repercussions

http://www.publishersweekly.com/pw/by-topic/industry-news/bookselling/article/46221-borders-bankruptcy-to-ripple-through-industry.html

The store my walking partner M. likes to go to in Marlboro will not be closing (at least not in this round), so she's happy and that's a good thing.

Ingram was went to cash-on-delivery late in 2010, so they aren't one of the big creditors in the case. I had thought that all of PGW's houses went to Perseus; surprise! Some went to NBN. They made slightly different choices about how to handle the end of last year:

"NBN, owed just under $2 million, was only shipping books to the outlet after clients agreed that NBN wouldn't be responsible for money lost in bankruptcy. Perseus Distribution Services is owed $7.8 million."

Hard to know whether the bigger number for Perseus is an artifact of them just being bigger, and how much is them making a bad call.

"The trickle-down impact will affect everyone from manufacturers to agents. Borders accounted for about 8% of overall industry sales, a higher percentage in some categories. A downsized Borders means publishers are likely to receive smaller orders and in turn place smaller first printings, resulting in less business for printers. The likelihood of lower print sales, one publisher said, means that books acquired one or two years ago when Borders was much bigger will have a more difficult time earning the advance back and that less shelf space could mean lower advances."

A lot of this really needs to happen anyway: we can't keep printing the same amount if e-copies are increasing. As for advances, well, I'm sure some of the boosters for e-only publishing will have something to say about advances being a dumb thing anyway.

"The company promises that despite closing 200 of its 488 superstores, it will remain a national chain as the map on pages 8–9 shows, Borders will have outlets in most states where it had been operating, although as many as 75 stores, on top of the 200, could be closed."

That's an awful big step down. It's not easy to find a new stable plateau in the face of that large a change.
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