As Borders struggles to dig itself out of debt, it has suspended payments to its vendors. And several publishers have stopped shipping to the book chain. Now add Diamond Book Distributors to that list. They have informed their clients that since Borders has suspended payments to them, DBD is suspending product shipments and has put the Borders account on hold. According to the announcement, Diamond is attempting to work with Borders to resolve the situation and “craft a solution that proves to be in the best interests of both DBD and our publishers.”
Border’s money woes continue to be of great concern to the book world, and several publishers have stopped shipping to the chain while they attempt to round up more financing. As reported today in Publishers Weekly, a huge meeting is planned for tomorrow afternoon between publishers and Borders:
Publishers, according to sources, will largely be represented by lawyers and finance executives who hope to hear more about the retailer’s new finance and turnaround plan from the Borders’ team. Publishers were unimpressed with the presentations made by Borders last week and the sense is that if Borders expects publishers to accept their proposal for publishers to exchange missed payments for notes, they need to hear a much more robust plan.
Borders also announced plans to close its LaVergne, Tenn. warehouse in mid-July, resulting in the downsizing of 310 employees. The warehouse is being closed as part of the ongoing financial restructuring.