Anderson Lays Off Employees; Source Sues
By Judith Rosen -- Publishers Weekly,02/18/2009
The troubles at Anderson News in Knoxville, Tenn., continue to mount in the wake of its attempt to get an additional 7¢-per-copy surcharge from magazine publishers. Late last week the wholesaler laid off employees from its magazine distribution offices, information technology group and Prologix, a joint venture with News Group. As reported by the Knoxville News Sentinel, in a note posted on the doors of the company’s headquarters Anderson News CEO Charles Anderson said that the company hoped to resume normal business activity soon.
Meanwhile, Source Interlink, which also asked for a 7¢ surcharge and, together with Anderson, held 50% of the country’s magazine distribution business, has taken its fight against publishers’ refusal to ship magazines to court. In a 28-page complaint filed last week in U.S. District Court for the Southern District of New York, Source accused Time Inc. and Hachette, among others, of trying to destroy its business and put its 8,000 employees out of work, as they did Anderson's. Defendants’ goal, said Source, is to give competitors Hudson and News Group a wholesale monopoly. Source is seeking compensatory and punitive damages.
As part of the suit, Source’s request for a temporary restraining order prohibiting magazine publishers from denying it shipments was granted. A preliminary injunction hearing will be held next Monday, February 23.
In the meantime, book publishers have begun reclaiming inventory from Anderson.
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| Submitted by: | SCOTT SHERIFF (mossyoak1@centurytel.net) 2/22/2009 9:54:39 AM PT |
| Location: | WEST PLAINS,MO |
| Occupation: | UN-EMPLOYED |
AS A EX-EMPLOYEE AS OF 02/06/2009 ANDERSON WAS WRONG HOW THEY TREATED THE EMPLOYEES AFTER THE LAYOFF.1 DAY NOTICE,HAVING TO USE YOUR VACATION/PERSONAL DYS TO GET PAID AND THEN SAYING WE ARE NOT LAYEDOFF WE ARE ON A FURLOW,AS MY SUPERVISOR PUT IT TO ME.UPPERMANAGMENT KILLED THE COMPANY.I HOPE WE GET SOME KIND OF SETTLEMENT ON THE WARN ACT FOR OUR FAMILIES THAT PUT UP WITH THIS BACKSTABBING NONSENSE.
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