Anderson News Suspends “Normal Business Activity”
by Judith Rosen -- Publishers Weekly, 2/9/2009 9:09:00 AM
Three weeks after Anderson News threatened that it could cease distributing magazines unless publishers paid a 7¢/per copy surcharge, the Knoxville, Tenn.-based distributor of magazines and books may be forced to exit the business. Not only did publishers refuse to pay the surcharge, but they stopped shipping to it.
On Saturday, the Knoxville, Tenn.-based distributor, which services 40,000 outlets, announced that it had suspended normal business activity, according to the Knoxville News. The suspension affects employees at Anderson News, Prologix East, Anderson Services and Twin Rivers Technology.
We continue to work toward an amicable solution,” said Anderson News CEO Charlie Anderson in a statement released on Saturday. “I have been told by our two largest publishers that any interruption of service should last only a few days. I am not quite sure if they really understand the situation. This is a mess for all of us.”
Last week another wholesaler Source Interlink, which also sought a 7¢ surcharge, was rumored to be in trouble.
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