Friday, November 7, 2008

Borders Not Paying its Bills

According to a "special alert" from a major book distributor specializing in independent publishers to its publishing clients, Borders has told the distributor "that they will not be paying [the distributor] for two months due to anticipated excessive returns." The distributor worries that the estimated default of $2 million "would be painful, weaken the short-term health of the company, and would mean we would have to defer some of our plans for future growth."

As a result, the distributor is asking its publishing clients to make a decision this weekend: "Publishers must either instruct [us] not to ship their titles to Borders [or] accept the provision that [we], for Borders business only, will guarantee payment only for the publishers' historical printing cost of books that are not paid for, rather than for the whole amount of any unpaid invoices."

For the full story, see GalleyCat.

1 comment:

bermudaonion said...

Wow! The only Borders around us that I know of is a Borders Express (or something like that) at the mall and it's so small and crowded, I never shop there.