Big book publishers try to force Anderson News into bankruptcy

The mess that is the U.S. single copy magazine business just gets grimmer by the days. Four major U.S. book publishers went to U.S. bankruptcy court in Manhattan, trying to force Anderson News LLC into receivership. According to Reuters, Hachette Book Group, HarperCollins Publishers, Random House Inc and Simon & Schuster Inc. are trying to recover all or part of the US$37.5 million they say the distributor owes them. Anderson News distributed books as well as magazines.

Under U.S. law, creditors may begin an involuntary bankruptcy proceeding to force a debtor to confront the debts they are owed. The alleged debtor has about 20 days to object to the filing.

In previous posts, we have reported that Anderson tried to muscle magazine publishers into paying a surcharge for every magazine copy they distribute; publishers like Time Inc. balked. Anderson shut down its business. And now there's a reckoning.

Related posts:

• Pay an extra 7 cents a copy, or else, U.S. magazine distributor says
• Source Interlink adds 7 cent surcharge, following Anderson's lead
• News Group won't surcharge on single copies, at least for now
• Time Inc. holds back popular titles in retaliation for wholesale surcharge demand
• Time Inc. and Source Interlink settle distribution fight