What's Happening?
Baker & Taylor, a prominent library wholesaler, is preparing to shut down operations after a failed acquisition deal with ReaderLink. CEO Aman Kochar announced the decision at a town hall meeting, stating that the company could not find a sustainable path forward. As a result, approximately 520 employees were laid off, with severance plans canceled. The company plans to wind down by January, affecting its distribution center in Momence, Illinois, where 253 of 318 employees were let go. The closure details were released under Illinois's Worker Adjustment and Retraining Notification Act, highlighting the company's unsuccessful efforts to continue operations post-acquisition failure.
Why It's Important?
The closure of Baker & Taylor marks a significant shift in the library wholesaling industry, impacting publishers, librarians, and employees. The company's shutdown could lead to disruptions in the supply chain for libraries, affecting book availability and distribution. The layoffs and canceled severance plans also highlight the economic challenges faced by employees, raising concerns about job security in the industry. The lack of communication from Baker & Taylor has frustrated stakeholders, indicating potential challenges in managing industry relationships and future business operations.
What's Next?
Baker & Taylor is expected to wind down operations by January, with remaining employees working until December 22. The company may look to sell off various parts of its business, with Baker & Taylor Publisher Services identified as a potentially attractive asset for buyers. The industry will be watching closely to see how the sale of assets unfolds and whether it can mitigate the impact of the closure on the library supply chain. Stakeholders, including publishers and librarians, may seek alternative solutions to address the distribution gaps left by Baker & Taylor's exit.
Beyond the Headlines
The closure of Baker & Taylor could have long-term implications for the library wholesaling industry, potentially leading to consolidation or increased competition among remaining players. The situation underscores the challenges faced by companies in maintaining operations amid failed acquisitions and economic pressures. It also raises ethical considerations regarding employee treatment and communication during corporate transitions, highlighting the need for transparent and supportive practices in the industry.
