The Bertram sale news is in my opinion the worst news to hit UK's independent booktrade since the aboliton of the NBA.

Perhaps there is a possibility that the purchase could be referred to the Competition Commission : I would be very concerned about supply - let alone terms - on some books in coming years.

A black day also for many indie publishers, not to forget possible long-term effects on library supply.

By way of a PS my comments above, I can't help feeling that it was a great pity that the independent booktrade wasn't given the opportunity to purchase Bertram as a co-operative. It would have been a win-win situation for all the terrestial booktrade, as well as most publishers.

However, assuming that it was the venture capitalist money which wanted out from Bertram I am reminded of the ghastly mess which was made with Little Chef after Permira sold that chain for £52m.

Bad enough that EUK acquired THE, but no way should Bertram have gone in the same direction.

Richard, are these bestseller lists in terms of numbers of copies sold, or revenue generated?
Also, I'd be very interested in seeing the Macmillan Education ELT bestseller list. Would it be possible for you to publish that at some point?

The bestseller lists are essentially revenue-based although different businesses treat sales in different ways depending on the accounting rules for that country. For instance, some include agency titles, some don't. Some deduct returns provisions from revenues, some from gross profit. So there isn't really a straightforward answer. The lists are meant to give a sense of what's selling rather than trying to be 100% comparable and auditable.
The ELT nimbers wouldn't really mean much because soem titles are reprinted overseas, some exported form the UK, and all the titles have many many ISBNs in a series complicating matters further. I will however ask them for theuir best guesses.

Gardners is still independent. The moment Kip and Elsie Bertram sold the family firm anything could happen and has. Good or bad I have no idea but it was no longer the Bertrams of old.
RE libraries - as we read in the report a couple of days ago, libraries are buying fewer and fewer books, from Bertrams or anywhere else so the sale to Woolworths in this area will probably make no difference. It`s computer suppliers who are now the golden egg in terms of supplying UK libraries.

Takeovers and Mergers for this - I believe one of the key factors for referrals is market share and of course then that raises masses of arguments on how to define the market. If the market is "wholesale" book supply then there must be an argument that this move is anti-competitive in some way assuming (as we must) that THE and Bertrams are to become 1 (which 1 is maybe the key practical question!) in a market of now 2. Let alone the potential issues with the mother company of a large retailer (i.e. Woolies) taking over and controlling 2 suppliers.

Whoops - Post above was supposed to begin with the words "I am slightly surprised there hasn't yet been any talk of a referral to the Panel for...."

All too true Nic, plus there is the added "ingredient" that EUK currently happen to be supplier to supermarkets. I believe that the Competition Commission are due to issue their preliminary findings of their latest investigation into the supermarkets on Tuesday morning of next week at 7.00am. There is still plenty of time for the booktrade collectively to petition the Competition Commission and request a preliminary investigation into the UEK-THE-Bertram marriage.

Does the trade want to become purely mainstream or is there still a place for the adventurous independent bookshop which will should help to ensure survival for the smaller publishers ?

There is a side issue, which should be a major consideration for all publishers. Woolies, are a "basket case" : this is not something which will concern the CC, but since Woolies are a very sick business should the publishing industry really be prepared to let Woolies have any part of wholesale distribution to the independent booktrade, other than that which they already have via the earlier purchase of THE.

I don't want to be an apologist for Woolies, but their strategy is very understandable, and may not work to the disadvantge of the indies. CK paints them as a basket case, and that is half-way true - the retail chain is very "challenged".

But their move into books makes sense, and I think is driven by the following reasons:
1. the endless decline of the music market (and the DVD market now going into decline too).
2. the loss of the Tesco music account (announced last year, but happening now).

This leaves them with a revenue hole, but they have a very efficient distribution business in the shape of EUK, the supermarket customers also need books from someone, so why not get involved?
I don't think it would be in their interests to disadvantage the indie sector, and if they have any sense they will look, in due course, at what other categories they can supply to indie book retailers, and indeed other retail segments.

Paul

The THE website is an absolute disgrace. This is how I judge the prospects of EUK having control of Bertram. I believe that EUK have had control of THE since September 2006, hmmph : what the heck has the management been doing when they ignore this basic outdated mess as you venture away from the homepage.

Also, I would be very concerned about long term prospects of a wholesaler which is prepared to have a liability for somewhere between £2-£4 million pounds following the collapse of Music Zone. Not very clever trading.

In my opinion, humble or otherwise, Bertram should have been floated as a seperate entity in which the (independent) booktrade could collectively have been given the opportunity of investing to assure our supply future.

Woolies appear certain either to be broken up or in a worst case scenario, a few years down the road, going into administration. The worldwide booktrade has lost enough money in this decade from trading failures : why, other than for short term financial gain for the private equity holders, was Bertram Group offered to EUK ?