In a January 3 filing, Christine Shubert, the trustee overseeing the Chapter 7 proceedings of Good Enterprises, has asked the bankruptcy court to give Good Books’ distributor, Simon & Schuster, the authority to continue to sell the company’s titles. According to the filing, there are about 1.4 million Good Books units sitting in S&S warehouses that could bring in about $900,000.
The filing asks the court to permit S&S to sell the books “free and clear of all liens” and asked for an expedited hearing to approve the motion, noting that quick approval is the best way to ensure timely sales of the books as well as the best way to avoid “chargebacks” from accounts. The filing also notes that any changes to the standard distribution agreement must be approved by the trustee and the Goods’ bank; to speed the sale of the Good titles, The Goods want to have the ability to authorize S&S to initiate deeper discounts on the titles, participate in coop and other promotions, and possibly sell certain titles as remainders.
Good Enterprises filed for Chapter 7 in December; its bank is its largest secured creditor, owed about $6 million.
