Industry & Advocacy News

Albert Whitman Bankruptcy Update

The Publishing Industry

May 6, 2025

• Share
• on Twitter (opens in a new tab)
• on Facebook (opens in a new tab)
• on Linkedin (opens in a new tab)
• via email

The Authors Guild is continuing to work on behalf of its member authors in the Albert Whitman bankruptcy. During the past week, we have retained bankruptcy attorneys from Royer Cooper Cohen Braunfeld LLC to help Authors Guild members in the bankruptcy process. The attorneys will be representing all Authors Guild members.

We have also tried to contact Albert Whitman executives, and are directing members to Martha Martinez, the administrator designated by the Albert Whitman team to handle author concerns, who has responded in a timely manner with a promise to provide further information after consultation with their bankruptcy attorney.

Bankruptcy of a publisher can be a drawn out and complicated process. Here are a few things authors should know about the bankruptcy process in this case and what to expect in the coming weeks and months:

Chapter 11 Bankruptcy, Subchapter V Expedited Process

As we explained in our last blog, Albert Whitman filed for Chapter 11 bankruptcy, often referred to as “reorganization.” Unlike Chapter 7, which involves liquidation, Chapter 11 aims to preserve the business as a going concern. The company—called the “debtor in possession”—typically remains in control of its operations during the process. Chapter 11 gives companies breathing room to restructure contracts, renegotiate with creditors, and develop a court-approved plan to return to profitability. For a publishing company, filing Chapter 11 might involve:

• Renegotiating contracts with authors, printers, or distributors
• Rejecting certain contracts (e.g., if unprofitable)
• Seeking new financing to stay afloat during reorganization
• Selling off imprints or assets (like a backlist catalog)
• Proposing a repayment plan to pay creditors over time

We have learned that Albert Whitman has asked for an expedited reorganization provided by Subchapter V of the U.S. Bankruptcy Code, which has shorter deadlines for filing reorganization plans and allows for greater flexibility in negotiating restructuring plans with creditors. Typically, Subchapter V cases are resolved in under a year, but payouts to creditors take three to five years. The expedited process allows creditors to be paid more quickly and the company to return to full operations faster.

Authors’ Rights in a Bankruptcy Proceeding

Authors are considered creditors in the bankruptcy process and may be owed unpaid royalties, advances, or other contractual payments. You should receive a notice of bankruptcy filing, including instructions for submitting a proof of claim—a legal document stating the amount you’re owed. This notice typically comes from the bankruptcy court or the publisher’s legal team. It’s important to submit your claim by the deadline (the “claims bar date”) to preserve your right to recover any money owed. If your contract is still active and not rejected, the rights remain with the company, and you cannot publish or license your work elsewhere.

We are monitoring the docket and will provide updates. We will also assist Authors Guild members in filing their claim forms.

Reversion of Rights

In a bankruptcy case—especially under Chapter 11—the debtor has the right under Section 365 of the Bankruptcy Code to either assume (keep) or reject (terminate) its executory contracts. These are contracts where both parties still have ongoing obligations—like a publishing agreement where the author has delivered a manuscript, but the publisher hasn’t published or paid royalties yet.

If during bankruptcy, Albert Whitman rejects a contract, it is choosing to terminate its obligations going forward, subject to court approval. The rejection is treated as a breach of contract as of the date of the bankruptcy filing, and the author gets a reversion of rights and is entitled to file a claim for damages—usually for unpaid royalties or advances.

Note: Even if your contract states, as some Albert Whitman contracts do, that rights to you will revert automatically if the publisher files for bankruptcy, this clause is largely ineffective, and your contracts will still become part of the bankruptcy estate. Prior to the bankruptcy, Albert Whitman had started voluntarily reverting rights to authors who have made this request, but now that it has declared bankruptcy, all rights are frozen pending the resolution of the bankruptcy—unless the contract is rejected. Also note that in a bankruptcy, creditors are often paid less than the full amount of their claims.  So, even though the payout can take three to five years, the total amount that you might receive will likely be less than 100 percent of what the publisher owes you.

We will continue to provide more information as the process continues. If you’re an author impacted by the bankruptcy and would like the Authors Guild to represent you, please reach out to us at staff@authorsguild.org.