Penguin Random House leaders Markus Dohle and Madeline McIntosh announced Wednesday afternoon that the company will “regrettably” close two of their four current warehouse/operations centers by June 2015, in Pittston, PA and Kirkwood, NY. They describe it as part of “the difficult, yet necessary, decisions we have made regarding our future warehouse network.” “Additionally, several support and distribution functions for Penguin currently performed in Pearson’s Cranbury, and Old Tappan, NJ offices will be relocated during this same time frame, as will Penguin’s Inside Sales department.” As a result, all US fulfillment operations will be merged into the Westminster, MD and […]
Finance
Specialty Distributor HDA Suspends Business to Restructure
St. Louis-based specialty distributor of books and magazines HDA Inc. has abruptly suspended business, apparently due to a credit squeeze. Many book publishers use the company for distribution to such retailers as Lowe’s Home Improvement (where they are the exclusive category manager for books, magazines and maps); Menard’s hardware stores; Bed Bath and Beyond; Michael’s; Dollar General and other stores. They distribute magazines to those outlets as well, and also publish their own home plan books and magazines. Reportedly, employees were locked out on Monday and given letters indicating their employment was terminated. HDA ceo Bob Ketterer told consultant Linda […]
Another UK Independent Publisher Seeks Support
It has been a difficult period for independent publishers in the UK, with Saqi Books the latest to announce that it is seeking new investment or else will discontinue its English-language publishing program after 30 years. In their statement they indicate: “Following considerable success and significant growth over the years, Saqi is now reviewing its long term strategy. It is no secret that publishing in the UK is an uphill struggle, especially for a small independent outfit. We have been going from strength to strength and we saw our highest turnover in 2013. The directors are now reviewing our strategy […]
Cengage Announces Plan to Come Out of Bankruptcy
Following mediation by the Southern District’s US Bankruptcy Court, bankrupt Cengage says they have “reached an agreement with the company’s major financial stakeholders and creditors” to emerge from Chapter 11 once approved by the Court. As planned all along, more than $4 billion of their big debt load of $5.8 billion will go away (which still leaves them carrying substantial ongoing debt), and the company has lined up exit financing of between $1.5 billion and $1.75 billion, plus a new revolving credit line of about $250 million. The company hopes to have their plan confirmed by the court in March. […]
Corporate: Little Brown UK Buys Constable & Robinson; Simon & Schuster Launches Business Book Site
Little Brown UK has purchased Constable & Robinson, which will continue to operate as its own entity under managing director Pete Duncan, who will report to David Shelley. Nova Jayne Robinson indicates to the Bookseller that the conversations began some time last year, before the death of previous chairman Nick Robinson in September. “Nick and I shared the view that we could not imagine a better home.” C&R had been a member of the UK’s Independent Alliance, and they have been the UK distributor for Skyhorse as well as New Harbinger and New Holland. Simon & Schuster has launched 250 Words, […]
Haights Cross Sells Recorded Books
Haights Cross Communications has sold Recorded Books to private equity fund Wasserstein & Co., with Northwestern Mutual and Lexington Partners also contributing investment capital, and financing from BNP Paribas. The company’s primary market is unabridged audiobooks for libraries, schools and the retail market, but they also distribute 100,000 ebooks through their One-Click Digital Platform. Recorded Books ceo Rich Freese says in the announcement, “This strategic partnership provides us with the resources to further broaden our content offerings and services for customers, and accelerate our growth into additional global markets.” HCC used to report publicly until they filed, and emerged from, a […]