Concern for children's book market as The Book People fails to find buyer

Trade figures have said the failure of The Book People to find a buyer, leading to 155 redundancies, could have ramifications for the children's book market.

The company went into administration on 16th December, appointing Toby Underwood and Zelf Hussain from PricewaterhouseCoopers as joint administrators and blaming a “difficult trading environment” for its woes.

But, on 10th January, it was announced the company, which employed 393 people and specialised in selling children’s books, had not found a buyer, although it would trade online for now "whilst any remaining interest is explored".

Underwood said: "This is a tough time for everybody associated with the much-loved book brand. Despite best efforts in exploring a sale of the business, it has not been possible to do so. It is therefore with regret that we have had to make a number of redundancies today. Our focus will be on helping the affected employees and to keep the website trading with the retained staff for as long as possible."

Jodie Hodges, who represents children’s illustrators and authors at United Agents, said she was sad to hear the news and warned it could have big ramifications in her market.

She said: "We could lose consumers who bought their children’s books from there; I fear schools won’t be able to stock their shelves as plentifully, which can only have a detrimental effect on the promotion of reading for pleasure and the creation of new life-long readers; and income from The Book People often makes up a chunk of a lot of authors’ and illustrators’ earnings, backlist especially.

"As books are tending to backlist more and more at non-traditional booksellers now, to lose such a significant one is likely to have real, tangible effects on earnings and the publishing life of a children’s book. We simply can’t afford to lose retailers of any type."

After the administration news, trade figures including Polly Powell, chair of Pavilion Books and adviser to Quarto, had spoken of their hope the troubled retailer would find a buyer.

Powell said: "I think this is a sad day, but perhaps inevitable given the steep online pricing competition. The Book People can be credited with putting books into the hands of people who might not necessarily have felt comfortable in a traditional bookshop setting.

"I remember the Catteshall Stroll, which raised considerable amounts of money for charity, with great affection and was one of the few cross-company events at which the industry could mingle all in a good cause."

Anthony Forbes Watson, m.d. of Pan Macmillan, said: “The Book People have been valued partners through thick and thin over many years in bringing books to new readers, and we‚Äôre sad to see them go. Their departure will bring an unwelcome reduction in the diversity of the retail landscape.”

Nick Wells, publisher and founder of Flame Tree Publishing, told The Bookseller: "It's very sad to see the dismantling of a great book retailing institution which in its heyday could conjure sales of 50,000-100,000 copies, and not just of the obvious bestsellers."

Galley Beggar Press launched a successful online fundraising campaign last month over concerns it would not be paid £40,000 by The Book People for a special edition of Lucy Ellmann's Booker-shortlisted Ducks, Newburyport.

Galley Beggar Press founder Sam Jordison told The Bookseller: "Mainly, I feel very sorry for the people who have lost their jobs and all those schools and offices and other customers for whom The Book People provided such a good service. It's a big loss.

"Speaking personally, I'm even more grateful to all the people who helped us before Christmas. It's looking increasingly unlikely that we'll see any of the money that we're owed and I shudder to think what that might have meant for our sustainability."

The Book People website was still trading as usual on Tuesday morning, promoting a clearance sale and "New Year, New You" discounts of up to 85% on some collections of titles.