The judge overseeing the bankruptcy of Arcade Publishing has approved the appointment of GSL Publishing Associates to oversee the possible sale of the company. Arcade filed for Chapter 11 in June, five months after the death of cofounder Dick Seaver, and has not published any new titles this year. Hachette is continuing to distribute the backlist, but, with the approval of the court, is keeping receipts to help pay down Arcade’s debt. David Lamb, president of GSL, said the firm’s plan is to present the “entire Arcade list to see what kind of appetite there is for it and then develop options for the sale and for Arcade.”
Arcade’s assets include about 250 active titles and an inventory of 550,000 units. The company also has electronic rights to about 200 titles. Arcade is best known for its list of foreign literary authors including Bertolt Brecht, Octavio Paz, and Umberto Eco. Arcade also has a core backlist of more commercial titles that have been consistent performers comprising the Sean Bryan juvenile series, Templars, Freemasons, Secret Societies, Auschwitz: A Doctor’s Eyewitness Account, and Storytellers. Backlist had accounted for about half of Arcade’s annual revenue.
When it filed for bankruptcy, Arcade listed assets of $4.5 million and debts of $6.3 million, with some of the debt owed to authors. Lamb, who can be contacted at email@example.com, said GSL’s objective is to complete a sale that will be clear of any liens or encumbrances. A sale of the company must be approved by the bankruptcy court.