Marston and United Independent Distributors close to administration

The United Independent Distributors (UID) group, which includes Marston Book Services, is starting the process of entering into administration, following six months of "failed" attempts to sell the business or partner with investors.

The Bookseller has previously reported publisher concern over late payments from Marston, Eurospan and Orca, but parent company the US-based Independent Publishers Group (IPG) has also now said there are issues agreeing a settlement with the landlord at its Milton Park facility, which it plans to exit.

In a letter sent to publishers distributed by the group, Joe Matthews, chief executive of Independent Publishers Group (IPG)—which owns United Independent Distributors—said: "We have made the difficult decision to file a notice of intent to appoint an administrator for Marston Book Services and its parent company United Independent Distributors. For six months now we have worked to find a path forward through a sale of the business, a partnership with investors, and any other option to avoid administration. Despite some interest, those efforts have failed.

"Our strategic plan to restore the company to profitability requires that we exit the Milton Park facility, and while that move is underway and due to complete by the end of August, the landlord has refused to engage with us on a settlement. We are also facing challenges with our US and UK banks who thus far have decided not to extend further credit."

The company admitted it had also received "several statutory demand letters from publishers and threats of winding up petitions".

Matthews added that UID was "just months away from profitability" but explained that this would depend on the company moving to one warehouse in Biggleswade, Bedfordshire. "I would add that the UID group of companies were already highly distressed when we acquired them in October 2021," he said. IPG has struggled to return the businesses to profit amid reorganisation plans, and accounting changes; in October 2022 the group said it would harmonise Marston, Orca and Eurospan into a single solution, but also put Turpin into administration.

"I would be very interested to speak with anyone to protect our investment of millions of dollars, or at least help publishers avoid the hardship of the business closing," he commented. "All that said, I am also hopeful we can avoid administration on our own if we can settle with the landlord of the Milton Park facility (Oxfordshire)."

The letter concluded: "Last, we may be able to restructure the business through a ‘pre-pack’ offer that allows us to emerge from administration under a new company without disruption of the business.

"The worst-case scenario, in my opinion, is that no way forward emerges, and the companies enter administration with no go-forward strategy, and no plan to move inventory. I will be reaching out to publishers in the coming days to discuss what options are feasible in these circumstances and in the hope that we find a mutually acceptable way forward."

Last year, The Bookseller reported that a number of publishers had said they had to chase payments and paperwork from Marston, and that they had struggled with communication with the distributor. The IPG responded that there had been accounting changes during this time, which came after a period of disruption at the distributor, after Turpin Distribution went into administration.