Advanced Marketing requests approval of inventory return program to get credit for unused books

By Caroline Salls

Pittsburgh, Feb. 14 - Advanced Marketing Services, Inc. requested court approval of an inventory return program that would allow the company to return books to vendors in exchange for credit against pre-bankruptcy claims, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, ordinarily, there is a liberal relationship between publishers and vendors such as Advanced Marketing that allows customers to return books to Advanced Marketing for credit against their invoices and also allows the company to return the books to publishers in exchange for similar credit.

However, since Advanced Marketing filed for bankruptcy, publishers have stopped accepting its returns for credits, and, since the company must still allow customers to return books, a backlog of old titles is building in Advanced Marketing's warehouses.

As a result, Advanced Marketing is requesting approval of agreements with its vendors and suppliers that would allow it to return the books for a maximum credit of 25% of its invoice, not to exceed $7.5 million in total credits.

Advanced Marketing, a San Diego-based provider of customized merchandising, wholesaling and contract distribution services, filed for bankruptcy on Dec. 29. Its Chapter 11 case number is 06-11480.

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