Struggling Stealth Press Changes Focus

Looking to stem the flow of red ink, Stealth Press, a reprint publisher focused on direct sales, has laid off staffers and shifted its focus from the trade book market to the library market in an effort to remain in business. Michael Shoemaker, president of Stealth, declined to provide exact figures about the press, but he explained, "The funding climate has changed, and we have to live within our revenue." The house began with 17 employees and has about five today.

Stealth Press launched in 2000 with $1.3 million from venture capital firm Wellspring FV and other investors. The house specializes in using digital technologies and e-books to help market and promote its titles. Stealth offers hardcover reprint editions of out-of-print titles in horror, science fiction, crime and fantasy by such authors as Clive Barker and Peter Straub. The press offers its titles for sale through its Web site (www. stealthpress.com).

Shoemaker acknowledged that Stealth will delay its 2002 list while it reviews the line to make sure the titles are appropriate for the library market. Stealth has published 30 books since its launch and plans to publish between eight and 12 titles in 2002. Shoemaker denied reported claims that a number of Stealth authors were having problems getting paid. "Our authors are getting paid," he told PW, "although some have not yet earned out their advances."

Shoemaker said Stealth's financial problems stemmed from its efforts to enter the trade book market. "Bookstores don't pay their bills; the discounts are too big; profit margins are thin; distribution and returns are expensive; and you have to sell thousands of copies of each title just to break even," he said.

He said that Stealth will continue to offer its titles to the bookstore market on a nonreturnable basis. Shoemaker said the press receives orders from Amazon, B&N (both the Web site and bricks-and-mortar stores), Borders and eBay. "Independents order from us by phone and fax; we get library orders directly and through Brodart and Book House. We sell books everywhere we can."

Two independent bookstores contacted by PW were critical of Stealth. Elizabeth Baldwin at the Mysterious Galaxy Bookstore in San Diego, Calif., said the store had tried to do business with Stealth, but the publisher didn't offer standard discounts, and "we lose our shirts on any discount under 40%." Sue Howison at Dark Delicacies Bookstore in Pasadena, Calif., complained about Stealth's discounts ("at first they offered 15%") and arbitrary list price changes. Finally, she told PW, the publisher was just plain rude: "Books were shipped late for an event. We still sold more than 300 copies and never even got a thank-you. I'll never carry another one of their titles."

Shoemaker said the press is negotiating for a new round of funding and he is confident that Stealth will succeed. "We look for titles by quality authors that will have longevity and sell over a long period of time," he said. "We watch our inventory carefully. We can go back to press quickly for small print runs and we don't tie up our cash in inventory," Shoemaker said. "We can make money selling small numbers of titles."