An academic book publishing company with $40 million in turnover has now collapsed in administration, yet another sign the print and publishing industries are continuing to face severe transition pains.
The news comes after discount book group allbooks4less also fell into administration last week, following an aggressive expansion plan.
Publishers have commented bookstores and booksellers have struggled to prop up book prices in the face of dynamic online competition.
DA Information Services Group, which contains the businesses Information Specialists, DA Information Services Pty and Central Book Services, has been placed into administration.
The company claims to be Australia’s largest locally based full service academic library supplier, providing books, journals, eBooks and other media products for professional purposes across Australia and New Zealand.
The business was founded 60 years ago. Customers include academic libraries, research facilities, medical centres, government departments, universities and TAFEs, along with law libraries.
A spokesperson for administrator Ferrier Hodgson told SmartCompany while it was too early to give any detailed information about the business or its collapse, the business is trading as usual.
The company counts 45 employees, while a first creditors’ meeting is set to be heard tomorrow.
While there is little information about the company’s collapse, the publishing industry has been under a significant amount of pressure during the past few years.
Last week, discount bookseller allbooks4less collapsed into administration, with revenue of about $20 million. While the company’s restructure is partly due to the death of its director, the challenges in the book industry also played a part.
Readings books divisions manager Martin Shaw told SmartCompany last week the industry has managed to enter a period of quiet survival, but warned bookstores are still under huge amounts of pressure.
“As more publishers have let go of stock, there is a huge oversupply and that value proposition has disappeared,” he said.