Jeannette Seaver filed for bankruptcy protection for Arcade Publishing last week, with assets of $4.5 million and liabilities of $6.3 million. The company owes Little, Brown almost $500,000 for a loan and distribution services. The filing, as quoted by Crain’s, says that “the challenges of a small, independent publisher were made especially difficult by the current economic climate. For the past several months since the death of the Debtor’s president, Richard Seaver [who died in January] the Debtor has struggled in an effort to reorganize and seek investors. The loss of Mr. Seaver coupled with the ongoing financial issues in the publishing industry and the breakdown of the company have all conspired to force the Debtor to seek relief.”
Other publishing creditors include Harper UK, Hodder & Stoughton, Key Porter Books, Orion, Random UK, and Germany’s Suhrkamp.
The filing also lists two suits already pending, one from printer Edwards Bros. for the payment of almost $240,000 and another from Steven K. Hodel for the payment of author royalties.
Crains