Members of the imperiled Publishers Group West, a leading book distributor, would be offered financial compensation and distribution from the Perseus Books Group in an agreement announced Monday that would make Perseus a major force in independent distribution.
"We are moving quickly to provide a solution for PGWs clients, providing the funds that they need to keep operating so that can they can focus on publishing books," Perseus president and CEO David Steinberger said Monday in a statement.
Publishers Group West, which distributes works by Soft Skull Press, McSweeney's and numerous other independent companies, has been in dire condition since its parent company, Advanced Marketing Services, Inc., filed for bankruptcy last Dec. 29.
Payments for the final quarter of 2006 have been frozen, a potentially fatal blow to smaller publishers like McSweeney's, which had been counting on revenues from Dave Eggers' best-selling novel, "What Is the What."
According to the agreement, reached among Perseus, Advanced Marketing Services and Publishers Group West, Perseus would provide PGW members 70 per cent of revenues owed to them, cover costs for a five-month transition period and eventually make Perseus the new distributor.
Steinberger said Monday that the agreement is subject to approval from the United States Bankruptcy Court in Wilmington, Del., and from individual publishers with PGW.
"We have been working closely with the Perseus Books Group to come up with a solution that best serves the needs of our client publishers," PGW president Rich Freese said in a statement. "We value the loyalty and support that our clients have shown us during this difficult time and we are confident that this plan is the best way forward for them."
If the deal works out, Perseus would become the distributor for nearly 300 publishers.
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