Bloomsbury reaches new 'long term' trading agreement with Amazon after threat

Bloomsbury has reached a new "long term" trading agreement with Amazon after the retailer said last night it would remove its books from sale. Bloomsbury insisted that Amazon’s statement yesterday came as a surprise after discussions over terms began during the summer, saying that it had learned of the move only when Amazon issued its public comment late on Thursday (23rd). However, Amazon disputed this version of events, saying Bloomsbury had declined to meet in person or even take phone calls in the run-up.

Bloomsbury would have been particularly concerned over any impact on its share price, and future earnings. A statement issued to the Stock Exchange sought to reassure investors. It read: "Bloomsbury Publishing Plc, the leading independent publisher, has reached a new long term supply agreement with Amazon. The board reiterates confidence in consensus expectation."

Amazon confirmed the deal, saying: "As of 10.30 p.m. on 23 January, an agreement in principle has been reached between Amazon and Bloomsbury, and Bloomsbury books continue to be available for our customers."

A further comment sent to The Bookseller by Bloomsbury stated: "Amazon informed Bloomsbury that they would no longer sell Bloomsbury print books in the UK, Europe, and Australia, or Bloomsbury e-books worldwide from midnight. We have been in discussions with Amazon over terms since last summer. At no point during these discussions did Amazon say that they would take such action. We learned about this at the same time that Amazon issued a public statement and was contacting Bloomsbury authors and agents. We have now reached agreement with Amazon in order to ensure the continued availability of our titles on Amazon."

But Amazon responded: "In the seven months leading up to our contract expiry, we extended the existing contract multiple times and attempted repeatedly to meet with Bloomsbury to discuss a new contract; Bloomsbury refused on each occasion to discuss terms, declining even a single phone call or meeting in person.

Amazon UK unexpectedly announced that it would cease selling Bloomsbury’s print and e-books from midnight on 23rd January, saying negotiations between the giant retailer and the publisher had broken down.

A statement put out by the retailer explained that it had been unable to negotiate new terms with the publisher, despite extending the contract. The Amazon statement read: "Our contract to sell Bloomsbury titles was scheduled to expire last year. We extended the contract under its current terms several times in an effort to reach an agreement, but despite our best efforts over the last seven months, Bloomsbury has refused to engage in a good faith negotiation to discuss a new contract to sell their titles in our store. Unfortunately, the latest extension expires at midnight on the 23rd January and after that time, Amazon will no longer be able to sell Bloomsbury print books in the UK, Europe, and Australia, or Bloomsbury Kindle books worldwide."

It is more than a decade since Amazon last attempted to strong-arm a big trade publisher by de-listing titles. In that case Hachette and the giant retailer fought a very public battle that lasted months.