Wow.
Less than two weeks after AMS filed for bankruptcy, one of the largest
publishers distributed by its PGW subsidiary, Avalon Publishing Group,
is being bought by Perseus Book Group, which has its own distribution
company, Perseus Distribution, and owns Consortium. The companies
signed a letter of intent; the deal is expected to close soon. Today's Wall Street Journal estimated Avalon's annual sales at $40 million.
Perseus indicated it is making overtures to other PGW publishers. Avalon chairman
and CEO Charlie Winton, who founded PGW and sold it to AMS, and Perseus
Group president and CEO David Steinberger are "working together on a
proposal to AMS, PGW and PGW clients, all of whom are facing a very
challenging situation," Steinberger said in a statement. "We have
talked to a number of clients and we are in discussions with AMS."
For his part, Winton said, "We think a path can be found that would
benefit all parties. Because of its two distribution lines--Consortium
and Perseus Distribution--Perseus is ideally positioned to lead this
initiative."
Winton will continue to head Avalon for a transition period, then
advise Perseus Books on publishing and strategic issues, in particular
developing Perseus's client services business providing sales and
distribution services to independent publishers.
At press time, the status of Avalon inventory at PGW and AMS warehouses and monies owed to Avalon were unclear. It is much more clear now that PGW, if it survives, will be a significantly smaller entity than the one the industry is familiar with. In addition, Perseus, which entered the distribution business only two years ago when it bought CDS, continues to grow at a fast clip.
Avalon
imprints include Carroll & Graf, Marlowe, Nation Books, Seal Press,
Shoemaker & Hoard and Thunder's Mouth; Avalon also has an extensive travel book line. Perseus and Consortium
distribute some 150 presses, including, through Perseus, Abbeville,
Distributed Arts Publishers, Harvard Business School Press, Planeta,
Regnery, Taschen and the University of Michigan Press, and through
Consortium, City Lights, Copper Canyon, the Feminist Press, New Society
Publishers, Ocean Press, Seven Stories and Soho Press. PGW distributes
some 150 publishers, among them Grove/Atlantic, McSweeney's, Amber
Allen, Canongate, Hugh Lauter Levin, Milkweed, North Atlantic Books,
Pomegranate Press, Sasquatch and Soft Skull.