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June 11 – 18, 2009 Edition
Arcade Publishing In Chapter 11
NEW YORK, NY (AUTHORLINK NEWS, June 10, 2009)–Arcade Publishing, which has published some 500 titles and discovered dozens of new literary voices, has filed for Chapter 11 bankruptcy protection.
The respected publishing house was founded in 1988 by Richard and Jeannette Sever. Since Richards death in January 2009, the company has struggled to seek investors and to reorganize, in part by laying off senior v-p and general manager Cal Barksdale, assistant editor Tessa Aye, assistant editor, and editor and publicity manager Casey Ebro.
The company has $4.5 million in total assets, including liabilities of $6.3 million and inventory of $1.2 million. Of the assets, $2.4 million is owed to stockholders and $1.6 million to authors in accrued royalties.
Further hindering Arcades ability to reorganize are two lawsuits, one for $111,453 in unpaid royalties to Steven Hodel, and another $238,000 in unpaid printing bills to Edwards Brothers. The company also owes distributor Little brown $242,876, plus outstanding loans of $243,932. Little Browns parent company, Hachette, now houses Arcades inventory.
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