Canadian Harry Potter Publisher to Stop Publishing

by Jarrett Martineau | January 9, 2008 at 08:54 am

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The publishing business is a tough one, at the best of times, but 2008 looks to be a difficult year for all involved in the book biz.

Raincoast Books, the West Coast company that brought the blockbuster Harry Potter series to Canadian readers, announced Monday its imminent departure from the publishing business.

Raincoast president/CEO Allan MacDougall seen at a Harry Potter-related event in 2003. His Vancouver company is closing its publishing division as part of cost-cutting measures. Raincoast president/CEO Allan MacDougall seen at a Harry Potter-related event in 2003. His Vancouver company is closing its publishing division as part of cost-cutting measures.

The Vancouver-based company is halting its publishing program and announced other cost-cutting measures, putting the blame on the strong Canadian dollar and the resulting detrimental effect on the book retail industry.

The 15 books set for release this spring will be the final slate from Raincoast, which largely counted
West Coast and children's book authors in its publishing stable.

But, as some consolation, Raincoast will continue to offer the highly profitable Harry Potter book series to Canadian fans.

Raincoast officials said the company plans to refocus on its core business of distribution and wholesaling, but the streamlining measures will mean the closing of its warehouse in Mississauga, Ont., axing about 20 jobs in Vancouver and Toronto and reducing the number of its distribution clients.

Nevertheless, the company will continue to offer the Harry Potter books — part of its ultra-successful venture with U.K. publisher Bloomsbury — to Canadians, they added.

"We're definitely in a deflationary spiral," said Brad Martin , president and chief executive officer of the country's largest trade publisher, Random House Canada. "Clearly Raincoast looked at the situation and decided it was time to batten down the hatches because it's going to be a gutted-out year."

Martin predicted the trend of declining prices for both U.S. titles sold in Canada and Canadian-written books will accelerate in the next 12 months. And while this may be good news for consumers - provided, that is, a much-predicted recession doesn't sharply diminish their purchasing power - it means "a difficult year" in terms of revenues for publishers, distributors and booksellers, especially among smaller, independent operators, he observed.