Borders Chapter 11 Updates
As the bankruptcy of Borders moves along, the Creditors Committee raised a host of objections to approval of the DIP (debtor-in-possession) motion without modification. The committee termed many of the provisions "unreasonable, overreaching, and otherwise inappropriate." It also called on Borders to develop an exit strategy and to "develop and consummate an exit plan (be it a sale or infusion of capital) by mid to late June 2011."
Borders executives were in New York last week, meeting with publishers in hopes of getting them to resume direct shipments; Ingram has been Borders's main supplier since the bankruptcy filing. Also last week the New York Stock Exchange said it was preparing to delist the chain.
Sales, Earnings Up at Wiley
Total revenue at John Wiley & Sons rose 5% in the third quarter ended January 31, rising to $447.9 million, while operating income increased 2%, to $69.6 million. Excluding the negative impact of foreign currency exchange, sales rose 7%. Earnings reflect the $9.3 million bad-debt charge taken for Borders. According to Wiley, top-line results and improved margins due to higher revenue from digital products drove the earnings improvement.
Sales in the professional and trade division rose 7%, to $114.5 million, aided by a doubling of e-book sales, which rose to $5 million, as well as strong gains in the business and cookbook segments. For the first nine months of fiscal 2011, e-book sales were $15 million.
Jordan Fenn Joins McClelland & Stewart
Jordan Fenn—former publisher of Toronto-based Key Porter Books and an executive with Key Porter's bankrupt parent, H.B. Fenn—has joined McClelland & Stewart as publisher of Fenn/McClelland & Steward Ltd. Imprint. Fenn brings with him the line of hockey books that Key Porter and the Fenn imprint of H.B. Fenn had built.
Candlewick, Nosy Crow in Deal
Candlewick is launching a new imprint in partnership with Nosy Crow, an independent U.K. publisher of illustrated children's books and apps that debuted in 2010 to be edited by Candlewick's Joan Powers. The imprint plans to copublish many of Nosy Crow's titles in the U.S. and Canada, starting with 10 in fall 2011. Nosy Crow's first titles—it published its first books in January 2011 and plans a total of 26 this year—are mostly for young readers up to about age eight, with formats that include novelty board books and picture books. Nosy Crow was launched by U.K. publishing veteran Kate Wilson, who was formerly managing director of both Macmillan Children's Publishing U.K. and Scholastic U.K.
Avon Launches Digital Imprint
Avon Books has launched Avon Impulse, an imprint dedicated to digital titles that will focus largely on e-books, while also publishing POD novels/novellas by Avon writers and new authors. POD titles will be available only from online retailers. The line launches with A Lady's Wish, an original e-novella by Katharine Ashe set for release March 15 priced at $1.99. Avon Impulse will not pay an advance, but authors receive 25% royalties from the first book sold. After an e-book sells 10,000 net copies, the author's royalty rate rises to 50%.
Kodansha International to Close
In the wake of Japanese publisher Kodansha and Dai Nippon Printing's acquisition of New York/Tokyo independent publisher Vertical Inc., Kodansha is closing Kodansha International, an English-language imprint of the giant Japanese publishing house that published a diverse list of fiction and nonfiction in translation. Although the closing of Kodansha International has been announced, details were still being determined, although it is unlikely any new frontlist titles will be released.
