Books & Beyond Looks For New Financing

Books & Beyond, a direct-sales book business established by a former sales rep for Dorling Kindersley Family Learning, is looking for a buyer or partner to provide fresh funding for the company. Launched in fall 2000 by Susan Schilling and her husband, Nicholas (News, Oct. 23, 2000), the company sells children's books and family reference materials directly to homes through a network of sales associates.

Although the company generated revenues of nearly $900,000 in its first 16 months in business (through Dec. 31, 2001), Books & Beyond ran into financial trouble in early 2002, when the acquisition of the company by the Octopus Publishing Group was vetoed at the last minute by Octopus's parent company, Hachette. B&B's problems were compounded by a buildup of inventory that the company had acquired to support the launch of a new literacy division as well as the failure of its bank to file the necessary financing statements on time. Concerned about its future, four publishers who did business with B&B forced the company into Chapter 7 this spring. In July, a conversion to Chapter 11 was approved, allowing the company to continue operations and to seek new financing. To improve its financial situation, B&B hired GSL Publishing Associates, which has put together a prospectus outlining possible expansion plans. According to the prospectus, B&B has the infrastructure in place to generate total revenues of $3.4 million in 2003.