News Corp joined other public companies in issuing a formal notice to investors that the COVID-19 pandemic “is expected to adversely affect the Company’s business and results of operations,” detailing the negative impact across its businesses. At HarperCollins, “Sales are expected to be adversely affected by shipping restrictions and delays imposed by online retailers, as well as closures of brick-and-mortar retail stores.” Those declines are mitigated in part by “an increase in sales of digital formats of its titles.” The company advises that it is “implementing cost-savings initiatives company-wide,” without providing any further details on pay cuts, furloughs or other […]
LSC Communications Files for Chapter 11 Bankruptcy
As long expected, the book industry’s largest printer LSC Communications filed for Chapter 11 bankruptcy protection Monday in the US Bankruptcy Court for the Southern District of New York. (If you didn’t know the reality, you would have breezed by the innocuous sounding press release they issued, “LSC Communications Takes Action to Strengthen Its Liquidity and Improve Its Capital Structure,” which is brimming with unwarranted optimism.) The company has commitments for $100 million in debtor-in-possession (DIP) financing, and says it will continue operating “in the ordinary course” and “intends to pay vendors in full under customary terms for all goods […]
AAP January Stat Shot Shows Increased Print Sales
AAP’s January stats, from 1,361 participating publishers, show total adult and children’s print sales up slightly, to $365 million, up from $353 million last year, mostly due to continued growth in children’s. Adult print trade sales were just above flat at $232 million, owing to an 8.1 percent increase in trade paperback sales. Mass market was down 20.5 percent, while hardback sales were down 4.4 percent. Children’s print trade sales grew to $133.3 million, up from $122.5 last January (and also revised upward from original reporting of $119.9 million). Adult ebooks declined to $65.1 million, from $69.7 million, or 6.6 […]
HMH Reduces Salaries, Withdraws Guidance and More
Following yesterday’s news that HMH Books & Media had temporarily closed its Indiana distribution center as the state is on lockdown, parent HMH issued a business update, announcing a series of cutbacks. The “majority of employees” have been reduced to a four-day work week, at pro-rated pay, while directors and top executives have taken a 25 percent cut in base cash compensation. The ceo has taken a 50 percent reduction in base salary, and “senior leadership” has also taken unspecified salary reductions. They say that all of their warehouses and distribution centers, with additional facilities in Illinois, Missouri, and Florida, […]
Status: Indiana Warehouses, Canadian Book Printers
Following Indiana’s stay-at-home order, HMH Books & Media has temporarily closed their distribution center in Indianapolis, IN until April 6, per the timeframe in the order. During this time, HMH will hold all orders in process. While that order does allow “fulfillment centers” to operate as “essential infrastructure,” the company says “our top priority is the community’s safety and we will continue to assess and will ask folks to return in order to fulfill essential needs.” President Ellen Archer said, “We have taken the preliminary step to close our Indiana distribution center in order to comply with the spirit of […]
Quarto Reports Lower Sales, Marginal Profit in 2019
Quarto reported unaudited results for the year ending December 31, 2019, with sales of $135.8 million, down 9 percent from $149.3 million in 2018, but they returned to a modest after-tax profit of $2.9 million, compared to a loss of $600,000 in 2019. (Full results have not yet been filed with UK regulators, and no other measures — like pre-tax earnings — were provided.) Lead shareholder and ceo C.K. Lau said, “We expect to report profit for the year ahead of the prior year and this represents a pleasing result.” Revenue was just above flat six months ago, so all […]