What would a Friday be without the weekly (I know, sometimes daily and hourly) update on the Borders bankruptcy?
Bloomberg reported yesterday that Borders wants to find $50 million more in financing. Mind you, this is in addition to the more than $500 million debtor-in-possession loan it has already secured. The reason? Because they aren’t selling as much as they’d forecast. Gee, imagine that. Have a bad business plan — oh wait, they haven’t filed their new business plan/restructuring plan with the bankruptcy court yet — and close a third of your stores and threaten the close of even more and your sales go down. Who’d have thunk it?
Bitter? You bet. I love bookstores. The Borders nearest to where I live is one of those closing, despite the fact the store was posting a profit. Some very good folks have lost their jobs even as Borders was asking for permission to pay its executives millions in bonuses. Sorry, I don’t believe in rewarding folks who aren’t getting the job done while punishing those who are.
Any way, there’s a lot of subtext in the Bloomberg article. How much is true, I can’t say. I expect a lot of it. Unfortunately, I can’t even say I’m surprised. This is a company that should have seen the writing on the wall more than two years ago and either didn’t or failed to do anything about it. Now they want publishers and other suppliers to trust that they’ll pay their bills — after already proving before the bankruptcy filing that they won’t. As far as I’m concerned, it’s time for them to prove they have a clue by filing their new business plan/reorganization plan instead of holding their hand out for more money while telling their creditors to bend over and trust them not to kick them in the rear again.
On another front, Kristine Kathryn Rusch has a follow-up to her post about royalty statements. I wrote about the original article earlier this week. As I said then, I haven’t had the pleasure of meeting Ms. Rusch yet, but I have been following her blog for quite awhile now and I urge every writer and small press publisher/editor to do the same.
These two articles by Ms. Rusch point out problems I’ve heard about from writer friends for a long time. No one has really rocked the boat because traditional publishing was the only game in town. Now, however, with the advent of the Amazon KDP program as well as Barnes and Noble’s PubIt program, authors now have an alternative. Throw in the growth of small press e-publishers and, well, the landscape is changing.
I won’t try to paraphrase what Ms. Rusch says in her articles. Instead, I suggest you read them and the comments that follow. Then, if you are traditionally published, check your royalty statements. If you have access to your Bookscan numbers, look at them and compare them to what your statements say you sold. Then, if you feel there is an under-reporting of your sales by your publisher, report it to your professional organizations and urge them to take action.
One last note. Over at Mad Genius Club, there’s a writing prompt contest going on. The winner will receive their choice of two titles from NRP, including Chris McMahon’s upcoming novella Flight of the Phoenix. Go check it out. You have until 0600 EST Sunday to get your entries in.
(Cross-posted to The Naked Truth.)