Approximately 85% of Bookpeople's vendors have endorsed the wholesaler's restructuring plan, which will reduce the amount of money the company will pay publishers on invoices over 90 days, thus qualifying Bookpeople to receive new financing from the investment group St. Cloud Capital. As a condition for its investment, St. Cloud demanded that Bookpeople significantly cut its debt, and Bookpeople needed at least 80% of its vendors to agree to the new payment terms.
Although the financing agreement is not expected to close until mid-August, the St. Cloud management team met with Bookpeople's employees last week to discuss their plans for the future. Steve Kerr, the financial consultant who arranged the financing and restructuring agreements, said Bookpeople will net $1.3 million in new funding. The first major investment will be to overhaul Bookpeople's warehouse, and the company has signed a deal with Bookzone for them to modernize the antiquated facility. Money will also go to hire new staff and possibly to make strategic acquisitions.
