Marston and United Independent Distributors now in administration

The insolvency advice firm Leonard Curtis has been appointed as the administrator for United Independent Distributors (UID) group, which comprises Marston Book Services, Orca Book Services and Eurospan, nearly three years after the company was acquired by the US-based Independent Publishers Group (IPG).

UID and its subsidiary companies went into administration on 25th July, days after IPG c.e.o. Joe Matthews told clients that IPG had filed a notice of intent to appoint an administrator. In his letter to clients, Matthews explained that UID was "months away from profitability" and added that the company had received "several statutory demand letters from publishers and threats of winding up petitions" after six months of "failed" attempts to sell the business or partner with investors.

There had been reports of late payments and paperwork from Marston in the past and the company attributed these to the accounting changes that it had recently undergone. But the group had faced disruption since Turpin Distribution went into administration as part of a reorganisation of UID.

In his letter to publisher clients, Matthews said that IPG’s plan to restore the profitability of UID was dependent on exiting the Milton Park facility, where Marston was located, but added that the landlord had "refused to engage with us on a settlement", while US and UK banks had not extended any more credit. He said that the company would have to move to a single warehouse in Biggleswade, Bedfordshire, before it could look to become profitable again in months to come. 

In an email confirming that the UID had gone into administration, a spokesperson told The Bookseller: "Despite IPG investing heavily in restructuring the UK operations, UID was unable to turn around a highly distressed business."