Thursday, February 17, 2011

Bankruptcy Filing Means Borders Owes Big Publishers Millions

Trachtenberg, WSJ: "'If publishers are lucky, they'll get back 25 cents on the dollar,' said Jed Lyons, chief executive of Rowman & Littlefield Publishing Group Inc., which publishes its own titles and distributes books for other publishers through its National Book Network. According to Wednesday's filing, Borders owes National Book Network $2 million. Although many publishers scaled back deliveries to Borders in the past year as its finances worsened, the filing showed they were the bookseller's biggest unsecured creditors, with the six largest on the list owed a combined $182 million. In first place was Penguin Group (USA), a unit of Pearson PLC, which Borders owes $41.1 million, followed in close order by Lagardère SCA's Hachette Book Group and CBS Corp.'s Simon & Schuster Inc. ... "