- Posted by Johanna on December 30, 2006 at 8:23 am
- Category: Graphic Novel News
Colleen Doran [link no longer available] has news of another distributor bankruptcy, as of yesterday, December 29:
Advanced Marketing Services announced this morning that it has filed for Chapter 11 Bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. The company said it took the action after its bank, Wells Fargo, refused to extend its loan agreement beyond December 28, depriving the company of operating funds. Up until this point, Wells Fargo has routinely extended the credit agreement though AMS has been in violation of certain lending covenants, which include the distributor’s inability to file updated financial information for fiscal year 2004 and beyond.
Gee, if the company doesn’t know where its money went for the last three years, no wonder it went under. Colleen provides additional information on how this affects comics, specifically:
That’s two major distributor bankruptcies for Dark Horse in six years. LPC was the other distributor, taking a lot of Dark Horse money, as well as Image money, including a year’s worth of A Distant Soil retail sales, just as our GNs were getting their first decent orders in the retail trade. This comes at an especially sensitive time for Dark Horse, which is expecting windfall sales on 300 in anticipation of the release of Frank Miller’s film.
Update: Tom Spurgeon links to the press release and a list of the publishers they distributed through Publishers Group West, which they owned. Other comic or related companies I noticed on the list include Actionopolis/Komikwerks, Broccoli Books International, and Gigantic Graphic Novels. The PR claims “Chapter 11 protection will enable the Company to continue to conduct business in the normal course, make payments to vendors going forward, and continue delivering quality service and products to customers.