For at least the past two months, national wholesaler Baker & Taylor has been having problems paying some of its suppliers. A range of medium-sized and small publishers have told PW that they have not been paid recently by B&T or are being paid late and only intermittently. For a few, the situation is so severe that they have put the wholesaler on credit hold. Large publishers apparently are being paid as usual, and even a few medium-sized publishers reported no difficulties.

Several calls seeking comment from B&T were not returned.

Some of the affected publishers said they have been told by B&T that the problems stem from a shift in the accounting department as well as other disruptions as B&T improves antiquated systems. (Early last year, the company moved the accounting department from its Momence, Ill., facility to headquarters in Charlotte, N.C., which slowed payments for a time. That move is not supposed to have caused the recent problems.) But several other publishers said that checks had been cut, but not sent for weeks or longer, indicating possible cash-flow problems.

The marketing director for a $9-million publisher said his company received a check in mid-January that was cut in early December, and that B&T is still past due on a number of other bills. The president of one medium-sized publisher said that as of 10 days ago, B&T was 60 days late in payments (beyond the 90-day norm) and that the house was owed $1 million. Since then, the wholesaler has sent a few checks and paid part of what was late, but it remains on credit hold. Likewise, the president of an $8-million publishing house has received "some checks" from B&T, he told PW, but other bills are nearly 60 days overdue.

The sales director of another medium-sized publisher called his house's problems with B&T "pretty serious" and complained that the wholesaler's response "has not been wonderful, by any stretch of the imagination." This house, too, has B&T on credit hold.

A $2-million publishing house had a "terrible time" with B&T late last year, so much so that it put B&T on credit hold, said the company head. Matters were mostly cleared up by year end, she continued, although a few bills are now past due. "I hope we're not getting into another thing with them," she added. Despite the problems, the house's business with B&T is up this year.

One leader in the independent press community said many small presses had problems "a month or so ago," and a few publishers had put the wholesaler on hold. But, she noted, "I've had several conversations with people at B&T and feel comfortable that they are trying to get caught up."

Calling the situation "frustrating and sad," the head of a small press reported that B&T pays "eventually," but "you never know what's coming down the pike. There will be nothing for months; then a whole bunch of checks arrive." He indicated that his company is considering removing B&T as vendor of record for some big accounts, adding, "This is a tough enough business without these kinds of problems."