NDD is working through the process of winding down the business including the settling of newsagent accounts. They are being transparent with newsagents on timing and fulfilling commitments they have given in terms of payment of credits.
The challenge, however, is that newsagents can find themselves waiting for a refund from NDD while facing bills for stock previously supplied by NDD which is now supplied by another distributor. I have seen cases recently where the cash flow cost of a title has doubled as a result.
It is disappointing that newsagents, the weakest partner in the magazine supply chain, are the ones carrying financial cost of this.
No one party is to blame but the publishers and distributors involved could have seen this challenge and assisted newsagents accordingly.
do you think there are any risks of NDD somehow defaulting or not giving our refunds back?
Ed, I am confident that NDD will meet all of their obligations to newsagents.
Really because it’s January now and we have received no payment nor any information and they have disconnected all phones, faxes and email accounts. It sure looks like they are not paying.