Borders Books is not going to have a happy new year in 2011 and neither are any publishers in their brick-and-mortar stores.

 

From the Wall Street Journal:

 

"The company reiterated an earlier disclosure that without refinancing, it could violate its existing credit agreements in the first quarter of 2011 and ‘experience a liquidity shortfall."

 

This is bad news for publishers and especially bad news for comic book publishers. In the past, when even a small distributor has gone under, it’s deeply affected comic book publishers and pushed several into either lean times or bankruptcy.

Since this info is being released during the slow news period just before New Year’s, it also feels like Borders is trying to hide the bad news between the "Year’s Best Movies" and "Year’s Worst Break-Ups" lists that proliferate this week. Lots of regular media folks are on vacation now and aren’t paying that much attention.

 

If I was a publisher, I’d start figuring out ways to amp up my revenue asap and consider having one of those giant discount warehouse sales as quickly as possible. 

 

If Borders goes under or continues to delay payments to publishers, it’ll have a ripple effect throughout the direct market and elsewhere.

 

Not a happy new year if that happens.

 

[Artwork: Borders]