Industry & Advocacy News

Albert Whitman & Company Bankruptcy: What Authors Need to Know

The Publishing Industry

April 25, 2025

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Update, May 6, 2025: Read our Albert Whitman bankruptcy update here.

April 25, 2025; The Authors Guild is concerned by Albert Whitman & Company’s recent bankruptcy filing. For months, we’ve worked directly with the company’s leadership regarding late payments and rights reversion issues affecting our members. In December, we sat down with them and they dismissed bankruptcy rumors as unfounded and attributed their cash flow problems to book bans and the non-renewal of foreign licenses.

During this meeting, we developed what we believed was a good-faith framework for resolving payment issues and securing rights reversions for authors who wished to leave due to payment problems. AW&C leadership promised to inform us if their financial situation worsened to the point they might have to consider filing for bankruptcy, as once a bankruptcy is imminent or filed, rights are frozen pending the bankruptcy proceedings. 

We are disheartened that despite our support and collaborative efforts, AW&C proceeded with their Chapter 11, Subchapter V filing without any advance warning. The publisher has cited “ongoing financial pressures in the children’s book industry” as their reason for filing, stating in an announcement that “this is about rebuilding, not closing down.” That they will be restructuring through bankruptcy, not closing down and selling off assets, is good news, because if assets were to be sold off in a liquidation, authors’ rights might be tied up for a while and end up with a less than desirable publisher. That will not be the case here under this bankruptcy filing.

Recommendations for Authors

Understanding the bankruptcy process is crucial for affected authors. Chapter 11, Subchapter V is designed for smaller businesses to reorganize their finances while continuing operations. Bankruptcy imposes strict legal rules about payments from the company to third parties. Your contracts and payment schedules will very likely be affected by and during the restructuring process. The bankruptcy court will ultimately determine how existing obligations are handled, which may impact everything from royalty payments to production schedules for books in development.

If you’re an AW&C author, we recommend that you:

• Document all correspondence about advances, royalties, payments, missed deadlines, and rights.
• Review your contract carefully, paying special attention to reversion clauses and language about publisher insolvency.
• Contact the Guild immediately for personalized guidance if you’re a member.

Many authors have pressing questions: What will happen to books currently in production? How will royalty payments be handled during reorganization? What is the timeline for this process? While we don’t have all the answers yet, we’re committed to seeking clarity on these issues as the process unfolds. Our team is consulting with bankruptcy experts so that we can best advise our members caught in this challenging situation. We also remain in contact with AW&C leadership throughout this process.