Melville House Books

American publishers have been nervous about the status of the country’s second biggest bookselling chain, Borders, for quite a while, a worry that intensified after the recently severed British branch went bankrupt. Still, it’s been heartening to see that the chain has held on, paid its bills, and seemed to be recovering despite an ever-worsening economy.

Or has it? Late last week a Shelf Awareness report noted that, “At least three smaller publishers say payments from Borders have been delayed and they have retained a bankruptcy group as legal counsel.”

Yesterday, however, in an update, SA reported that Borders has issued a statement saying the report “includes inaccurate information.” The statement says the company “has continued to pay its vendors in a timely manner, has not lengthened its days to pay, and has not been contacted by a group of publishers as alleged. Product is flowing to our stores for sale to customers. In fact, we have significantly increased book inventory in the fourth quarter compared to last year, a sign that we have continued to receive support from the vendor community.”

Borders says it also contacted the law firm supposedly contacted by the small publishers — Lowenstein Sandler — and that the firm had issued a statement saying reports that “a group of smaller publishers had hired the bankruptcy group of Lowenstein Sandler as legal counsel is incorrect.”

What gives? Possibilities: Somebody just made this up and fooled some good reporters. Or the small publishers contacted the law firm all right, but found they couldn’t afford to take it to court. Here’s to hoping it’s none of the above, and Borders is as sound as they claim.

Dennis Johnson is the founder of MobyLives, and the co-founder and co-publisher of Melville House.