Following the decision by Graphic Arts Center Publishing to file for Chapter 7 liquidation, Ingram Publisher Services issued an alert to accounts notifying them that they are continuing to distribute the company’s titles. At this point in the bankruptcy process, IPS said, the distributor “will continue its normal activities including accepting orders, shipping books and processing and crediting returns” for Graphic Arts titles.
IPS took over distribution for Graphic Arts in 2006 when parent company Ingram invested $1 million in the publisher to help it recover from an earlier bankruptcy. In 2007, IPS assumed the sales function as well. Ingram, along with the Silicon Valley Bank are Graphic Arts two largest creditors. In its filing, Graphic Arts listed assets of $7.2 million and liabilities of $11.7 million. Associate publisher Doug Pfeiffer said that even with the financial support of Ingram, Graphic Arts found it difficult to pay its debt service in a sinking economy. Although Graphic Arts cut as mnay costs as it could, Pfeiffer said, “we ran out of money.” Sales for the first eight months of 2009 were just over $5 million; sales for the full year of 2008 were $10.3 million. At one point Graphic Arts served as distributor for a number of other Northwest publishers, but with the company struggling this spring, Graphic Arts allowed its clients to find new distribution.
A trustee is expected to be appointed this week to oversee the liquidation process which will including selling about 350 active backlist titles.