AMS Bankruptcy: Loan Approved, Costco gives okay

As Advanced Marketing Services‘ bankruptcy woes continue to send the publishing industry into a tizzy, interim measures are now in place, the San Diego Union-Tribune reports, thanks to approval by Bankruptcy Court Judge Christopher Sontchi for up to $75 million in loans the company said it needs to operate while in bankruptcy. Good news also came by way of Costco, one of AMS’s largest distribution customers, who told publishers that supply books to AMS should continue to do so. A Costco spokesperson told PW Daily‘s Jim Milliot that until further notice, publishers should operate “on a business as usual basis.” Costco, the spokesperson added, is monitoring events “on a day-to-day basis.” Most of the larger publishers that supply AMS indicated they will continue to do so, but on a COD basis.

Though AMS’s Chapter 11 filing is only for its US holdings, the Bookseller reports that UK publishers are eyeing the bankruptcy filing nervously, despite assurances that AMS’s UK operations will remain unaffected. “There are no changes in our operations, we are free to conduct business as normal and our suppliers are unaffected,” said Gareth Powell, managing director of UK distribution company Advanced Marketing, an AMS subsidiary. But one publisher added: “My understanding is that the UK is affected and we will lose money on UK sales-we are waiting to hear.”

Launch a social media campaign that will build your brand and deliver results in our online Social Media Marketing Boot Camp starting June 7. Speakers include Abigail Cusick (Bravo Digital), Gregory Galant (Sawhorse Media), Alex Leo (Thomson Reuters Digital), Jim Tobin (Ignite Social Media), and many more. Read the reviews.