The deal under which Readerlink Distribution Service was to buy the business and "substantially all the assets" of Baker & Taylor, announced less than three weeks ago, has fallen apart. Sources report that the major sticking point involved B&T's debts, which were not part of the deal, and were substantial amounts for many publishers and other creditors.
In a letter about the original deal, which was supposed to close last Friday, Readerlink president and CEO Dennis E. Abboud noted that "certain suppliers have outstanding account balances with Baker & Taylor, which will remain with the current ownership. We have been advised that in the coming weeks the current owners or their advisors will provide guidance regarding the process for submitting claims related to pre-closing open invoices."
In the letter, Abboud observed that "the last several months have been a challenging period for Baker & Taylor. The company has faced headwinds, including the pressures of operating independently, emerging from the Covid-19 pandemic, and overcoming the debilitating impacts and financial losses resulting from cyberattacks in 2022." The library world has also suffered from budgetary pressures at all levels of government as well as waves of book bannings and anti-librarian laws and campaigns.
Under the deal, Aman Kochar, Baker & Taylor's CEO, would have continued to lead B&T and would have reported to Abboud.