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06 January 2007

Book distribution company (AMS) files for bankruptcy. Losses huge.

from | Dear Author.Com |

Advanced Marketing Services, Inc is a book distributor to warehouse clubs, speciality retailers, e-commerce companies, and bookstores.

The Group provides product selection advice, specialized merchandising and product development services, distribution and handling services to membership warehouse clubs.

This morning, Publisher’s Weekly reported that AMS is filing for a Chapter 11 restructuring. Chapter 11 allows the business to basically refinance its debts by either discharging them (which means that the company doesn’t have to repay the debt) or restructuring the debt. It’s debts owed are meaningful:
Random House, which is owed $43.3 million

Simon & Schuster, Penguin and Hachette Book Group are all owed more than $20 million each. HarperCollins is owed $18 million.

Note: I would have pointed to Quill & Quire (in Canada) for discussion of the threat this poses to Raincoast Books (of British Columbia), but Q & Q requires readers pay for a subscription before reading what they posted. (Go to the library for the hardcopy in a month. Phsst on that requirement.)

Raincoast is partly owned by the defunct AMS.

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