Still grappling with the impact of a likely bankruptcy filing by Borders, comics publishers learned last week that H.B. Fenn, the largest book distributor in Canada, had filed for bankruptcy. H.B. Fenn distributes more than 90 publisher-clients including such comics publishers as Marvel, NBM, Seven Seas, Tor Books and Yen Press.
The unexpected bankruptcy filing has forced publishers to scramble to make sure their books remain available in Canada. H.B. Fenn is a 30 year old company and has about 125 employees. While some publishers are working to move their books to other distributors, many are directing retailers to get their books from the wholesaler, Ingram Books.
NBM publisher Terry Nantier told PWCW that NBM had recently began using H.B. Fenn for their Canadian distribution: “They were just starting to build our business and did not have a lot of inventory,” he said. Nantier also said the distributor was “current” with all of its payments. “We’re already getting in touch with a number of distribution options,” Nantier said and noted that retailers can get NBM titles through Ingram. Nantier also said that the NBM titles were still available in the comics shop market in Canada through Diamond Comics Distributors.
Hachette Book Group spokesperson Sophie Cottrell told PWCW, “We’re advising independent stores they may order directly from Hachette Book Group’s Customer Service department, or work with jobbers/wholesalers to get HBG titles as well as those published by our distribution clients and Hachette UK. Hachette Book Group is the parent company of Yen Press, its manga and graphic novel imprint.
Another comics publisher, who declined to be named, told PW Comics Week that while their books were still in stock at most retailers they were taking steps to ensure readers could find their books and also noted that they were utilizing Ingram. Other houses contacted by PWCW among them Macmillan, the parent company of First Second, a significant comics imprints, said they were addressing the issue but declined to comment on the situation.
Publishers were already concerned about the on-going situation at Borders. While the national retailing chain has not formally filed for bankruptcy, most publishers and book industry observers believe it is only a matter of time before it does. Comics publishers were put on notice when Diamond Books Comics joined with other distributors and publishers and announced it had halted shipments of books to Borders.
The financially troubled retail chain missed payments to publishers in December and now January. Borders is in the process of securing financing for debt. While the bookselling chain has found a bank willing to provide financing, the bank is requiring publishers to sign off a refinancing plan that requires them to accept notes for the missed payments in December and January. At this point, many of the largest publishers appear reluctant to sign off on the plan.
