HarperCollins is closing its Canadian warehouse and shifting fulfillment and distribution for HarperCollins Canada to R.R. Donnelly in the U.S.; at the same time, David Kent is leaving the company as president and CEO at the end of the year.
According to the Toronto Star, Iris Tupholme, publisher, has been promoted to senior v-p and executive publisher, and Leo MacDonald, v-p of sales and marketing, has been promoted to senior v-p, marketing and sales. The two will oversee HarperCollins's Canadian operations.
HarperCollins president and CEO Brian Murray told the Star: "Nothing is going to change as far as the independence of our Canadian list or in its direction.... What we centralize is back-office functions, that's really been our focus. We are probably more committed to the Canadian market than any other publisher in the world right now. With the recent acquisition of Harlequin and with the continuation of our local trade list, we are extremely committed to publishing in Canada and for Canadians."
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Concerning Kent's departure, he said, "When we looked at the changes in the role of the CEO of HarperCollins Canada, without the warehouse and without the back offices... the role just doesn't fit in the plans going forward."
Howard White, co-owner of Douglas & McIntyre, which is distributed in Canada by HarperCollins, told the Globe & Mail: "This reconfigures the face of Canadian publishing to some degree. This is bad news. I think it represents a devaluation of the importance of the Canadian market."
Likewise Rob Sanders, publisher of Greystone Books, also distributed by HarperCollins, said, "I think it's a great loss for Canada. They were good distributors, they were accurate, [and] the people were nice to deal with."
Tupholme told the Globe & Mail, "Editorial remains as it has been. We have invested heavily in our editors, and we have an amazing group of people here. The Canadian publishing program is one that HarperCollins, both here and everywhere in the world, is very proud of. The Canadian publishing program is very important to them, and there's no question but that it will continue. No question at all."
By summer 2015, all warehousing, pick, pack, and ship services for all HarperCollins Canada titles will be moved to Donnelley's Plainfield, Ind., distribution facility. HarperCollins will handle Canadian customer service, credit, collection, IT, finance and freight services from its office in Moosic, Pa., where a customer support team will be maintained for HarperCollins Canada customers. All returns will be consolidated in Canada and forwarded on to the HarperCollins returns center in LaPorte, Ind. HarperCollins will work with its distribution clients in Canada to facilitate a smooth transition. The change does not apply to Harlequin titles, which will continue to be handled through the Buffalo, N.Y., warehouse.
The move is what the company described as "the next step" in HarperCollins's global supply chain partnership with Donnelly, announced in 2011, under which Donnelley is handling the fulfillment of HarperCollins new releases and providing international POD services.
Larry Nevins, executive v-p, operations, HarperCollins Publishers, commented: "We have taken a long-term, global view of our print distribution. Our supply chain agreements with R.R. Donnelley have allowed us to ensure we can competitively offer the entire HarperCollins catalogue to customers regardless of location. We are confident that R.R. Donnelley will provide the same great experience to our Canadian booksellers that they have today."