Baker Taylor Announces Closure Plans Following Failed Acquisition

What's Happening?

Baker & Taylor, a prominent library wholesaler, has announced plans to shut down operations by January following the collapse of its acquisition deal with ReaderLink. CEO Aman Kochar revealed the decision at a town hall meeting, citing the lack of a sustainable path forward for the company. As part of the closure process, Baker & Taylor has laid off approximately 520 employees, with severance plans canceled. The company had previously undergone layoffs earlier in the year, and the recent decision affects a significant portion of its workforce, including 253 employees at its Momence, IL distribution center. The closure details were disclosed through Illinois's Worker Adjustment and Retraining Notification Act.

Why It's Important?

The closure of Baker & Taylor marks a significant shift in the library wholesaler industry, impacting libraries, publishers, and employees. The company's inability to secure a path forward after the failed ReaderLink acquisition highlights the challenges faced by traditional wholesalers in adapting to changing market dynamics. The layoffs and cancellation of severance plans have raised concerns among employees and industry stakeholders about the company's handling of the situation. The closure may lead to disruptions in the supply chain for libraries and publishers, affecting the availability of books and other materials.

What's Next?

Baker & Taylor is expected to wind down its operations by January, with remaining employees continuing until December 22. The company may explore selling off parts of its business, such as Baker & Taylor Publisher Services, which could attract potential buyers. Industry stakeholders, including publishers and librarians, will be monitoring the situation closely to assess the impact on their operations and supply chains. The closure may also prompt discussions on the future of library wholesalers and the need for innovation in the industry.