The giant educational book publisher Houghton Mifflin Harcourt (formerly known as the Houghton Mifflin Company) has filed for bankruptcy yesterday morning, stating debits and liabilities over the sum of one billion dollars was responsible for the sudden decision. Filing for bankruptcy is part of a financial plan that includes restructuring the company’s debt by having pawnbrokers exchange the debt for nest eggs.
Currently available to the public is the first handful of filings from Harcourt, however there isn’t much to see other than the amount the company owes the largest unsecured creditors, such as: printing company Donnelley with $20.3 million; Donnelley Asia Printing Solutions with $5.6 million; Williams Lea, a global company that specializes in assisting businesses with outsourcing, with a little less than $21 million; Marshall Cavendish, a children’s book firm, is owed $6.7 million; Kue Digital Inc., an international online schooling company, is owed $4.5 million; and lastly the Bulkley Dunton Publishing Group is owed $4.1 million.
Harcourt has eased concerns about what this means for their suppliers by assuring the decision will not interfere with daily business practices or shipping out supplies to customers anywhere on the planet. Also much appreciated is how the company will handle employee payouts–with usual pay and benefits still being granted. Vendors and suppliers of Harcourt can also expect full payment for all services midst and after the transition.
HMH still envisions June 2012 as being the time when the bankruptcy case will be completed.
Houghton Mifflin Harcourt was founded in the year 1880, when William Ticknor and James Thomas Fields became tightly knit with Riverside Press, a printing company owed by Henry Oscar Hougton in the Boston area. Afterwards, Hougton and George Miffin founded a company together. In 1880, the group finally decided to operate as one, forming Houghton, Mifflin and Company.
Source: LA Times