My library only subscribed to a handful of Swets subscriptions when we got the news of its bankruptcy last fall, so the “fallout” for us consisted of finding another vendor to continue the subscriptions. We were comparatively lucky.
Coverage continues of the libraries likely to lose significant amounts of money due to credits with, or prepayments to, Swets. The assumption is that, despite filing claims, the libraries will not recover much of these amounts in bankruptcy proceedings. Potential losses by academic libraries mentioned in the article range from $850,000 to $3,000,000.
Back when the bankruptcy was first announced, Duke librarian Kevin L. Smith suggested alternative arrangements to protect libraries in the future. He mentioned holding prepayments in a type of escrow account, an idea from conversations he had with SAGE CEO Blaise Simqu.
Competing vendors may simply respond to this bankruptcy by welcoming the new business and ensuring libraries they’re on much more solid financial footing.
More Library Journal coverage of developments in the Swets bankruptcy is available here.
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