Reeling from heavy book returns from Chapters, Canada's publishers have begun requesting early advances on this year's government grant money and may publish 20% fewer titles this spring. "Returns are incredibly high this year, and publishers are being caught in a cash crunch right now. But I think it's going to be a whole difficult year considering there will be changes in the retail sector," Monique Smith, executive director of the Association of Canadian Publishers, told PW.
Yet, a quick cash injection may not be enough for publishers suffering from another year of high returns. "It's the highest [rate of return] any of us has ever seen... the returns are astronomical," said Kim McArthur, president and publisher of McArthur and Co., adding that even core backlist titles are being sent back. McArthur said Chapters' rate of return for 2000 was over 50%, and this year is shaping up to be the same. "We're all scratching our heads over how this can be, because the orders were lower last year," she said.
Last month, Heather Reisman, new CEO of Chapters, promised publishers quicker payments and fewer returns. But those promises cannot come soon enough for companies that may be inclined to publish fewer titles and not take chances publishing books by first-time authors.
"There have been cutbacks in Canadian publishing programs because of the crisis the industry is in. It's difficult to juggle paying the printers and designers. At a certain point, you look at your list and think, do I really need to publish all of these books considering things aren't looking so great?" McArthur said.
The federal Department of Canadian Heritage offers publishers funding valued at C$25 million ($16 million) a year. Last year, 213 firms received grants from that fund. About 20 received their checks three weeks early last year; this year, 22 have already requested an advance.
Not all Canadian publishers are equally affected. McClelland & Stewart Ltd. will publish its full line this fall, according to president and publisher Doug Gibson. Gibson said he is aware many publishers are in dire financial straits. "I hear that from all of my colleagues," Gibson said. "[We are in] some degree of difficulty, but I don't think our position is as bad as some of my colleagues,' " he added.
Yet Gibson believes there is still room in the marketplace for new Canadian titles. "Our assumption is there will be a continuing market for good books."
