- ReaderLink’s planned acquisition of library wholesaler Baker & Taylor collapsed over unassumed debts, and B&T is now winding down after layoffs and a January 2026 shutdown plan.
- The closure leaves a major library and academic supply-chain gap, pushing customers and publishers toward rivals like Ingram and Brodart.
- Big Five M&A was selective: PRH made three buys, Macmillan added Sounds True’s catalogs, HarperCollins expanded manga in Europe, while Simon & Schuster and Hachette stayed quiet in the U.S.
- Independents and niche presses continued targeted acquisitions as rising costs, debt stress, and shifting format demand drive consolidation and exits.
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The collapse of the ReaderLink-Baker & Taylor deal marks a watershed moment. Once the dominant library book wholesaler in the U.S., Baker & Taylor announced layoffs of over 500 employees and plans to cease operations by January 2026 after defaulting on debt and failing to find a viable acquisition structure. The failing deal hinged on ReaderLink’s unwillingness to assume B&T’s liabilities, including large debts to publishers and vendors. The closure creates a serious gap in the supply chain for libraries and academic institutions, forcing rapid reconfiguration among competitors like Ingram and Brodart.
Among the Big Five trade publishers, 2025 was a year of selective growth. Penguin Random House made three acquisitions, including Cherry Lake (6,000 titles, children’s and education), UK-based Wonderbly, and Text Publishing in Australia. Macmillan acquired the book, e-book, audiobook and audio original catalogs of Sounds True, broadening its spiritual wellness content. HarperCollins’ activity was limited to adding manga publishing operations in Europe via Crunchyroll. Meanwhile, Simon & Schuster and Hachette were notably static domestically; S&S made no acquisitions though it formed a joint venture in Spain/Latin America, and Hachette made nothing in 2025 after a 2024 acquisition.
Independent and niche publishers seized the opportunity to consolidate and strengthen specialized catalogs. Examples include Zando acquiring literary press Tin House; Andrews McMeel buying Philadelphia’s Quirk Books; Island Press being integrated by Princeton University Press; Catapult buying Hawthorne Books; and new players like Civica Media (backed by private equity) acquiring hybrid publishers. These deals indicate that scale, portfolio diversity, and specialization are key levers for survival and growth.
The financial and strategic pressures driving this wave of M&A are multifold. Baker & Taylor’s debt default, backorders, cyberattacks, and falling library print orders illustrate how vulnerable distributors are. For publishers the challenge is managing costs—print, distribution, marketing—while also adapting to changes in format demand: digital formats, audio, subscriptions, personalization are rising elsewhere. There’s also increased chance of more aggressive dealmaking to fill the chain-gaps left by B&T’s exit, possibly opening opportunities for Ingram, regional specialists, or private equity.
Open questions: Will any of the Big Five become acquisition targets themselves, or will they continue acquiring smaller players? How swiftly will libraries and publishers adjust their supply chains to replace B&T’s operational capacity? How will suppliers handle B&T’s unpaid obligations, and what precedent does that set for contracting risk? Finally, how will evolving reader preferences (audio, digital, niche content) reshape which acquisitions are most valuable?
Supporting Notes
- ReaderLink and Baker & Taylor mutually called off a proposed acquisition deal that was set to close September 26, 2025, because of large debts at B&T that ReaderLink would not assume.
- Baker & Taylor laid off more than 500 employees on October 6, 2025, and plans to wind down operations by January 2026.
- Penguin Random House’s three acquisitions in 2025 include Cherry Lake Publishing (6,000 titles children’s/library/education), UK-based Wonderbly (personalised gift books), and Text Publishing in Australia.
- Macmillan acquired Sounds True’s book, e-book, audiobook and audio original catalogs; Sounds True now refocusing on online learning, events, and digital media.
- Independent publishers: Zando acquired Tin House (200+ titles + trademark); Andrews McMeel acquired Quirk Books; Island Press acquired by Princeton University Press, etc.
- Financial pressures: B&T had defaulted on its primary creditor’s loans (CIT Northbridge), suffered from pandemic-related downturns, cyberattack in 2022, backorder issues; these squeezed its liquidity.
- The world’s largest publishers ranking 2025: Thomson Reuters overtook RELX as #1; McGraw-Hill Education re-entered the ranking with $2.1B in sales; revenue growth mostly modest, with trade/STM/professional publishers moving slowly.