A Writer’s Diary Entries From Late January, 1993 | Richard Grayson

A Writer’s Diary Entries From Late January, 1993 | Richard Grayson

A Writer’s Diary Entries From Early November, 1990 | Richard Grayson

A Writer’s Diary Entries From Early November, 1990 | Richard Grayson

A Writer’s Diary Entries From Late October, 1990 | Richard Grayson

A Writer’s Diary Entries From Late October, 1990 | Richard Grayson

A Writer’s Diary Entries From Early September, 1990 | Richard Grayson

A Writer’s Diary Entries From Early September, 1990 | Richard Grayson

Financially-troubled small press publisher Dumbo Books of Brooklyn files for Chapter 11 Bankruptcy Protection

This morning we are issuing the following press release:

Brooklyn, N.Y., Feb. 23, 2009 — Dumbo Books of Brooklyn has announced that it filed for Chapter 11 protection from its creditors on Monday, saying a massive slump in revenue from book sales was to blame.

The company owns a small press publisher of literary books and three nondaily online newspapers, including The Los Angeles World-Telegram & Star, and has about 3.5 employees.

According to Richard Grayson, the company’s chief restructuring officer who filed a declaration in the case, unaudited financial statements for the fiscal year ending Nov. 30 reported $5,963 in assets and $18,692 in debt, including unpaid interest. Revenue has fallen more than 70 percent since 2006, the company said in bankruptcy court documents filed in Delaware.

Grayson said in a statement that Dumbo Books "anticipates that the Chapter 11 process will allow it to significantly reduce debt from its balance sheet while facilitating a strategic reorganization of the company, which will place it in the strongest possible position to sustain its momentum despite extremely challenging market conditions for books like Who Will Kiss the Pig? Sex Stories for Teens, which up until recently was 3,765,633 on Amazon's best seller list."

Dumbo Books, based in the Williamsburg neighborhood of Brooklyn despite its name, proposes a restructuring in which it would cancel its stock — it traded for less than one cent on Friday — and become controlled by its lenders.

Grayson called the filing "ironic," noting, "Just like most of the few remaining readers of our books, we couldn't get past Chapter 11."

Financially-Troubled Small Press Publisher Dumbo Books of Brooklyn Announces Acquisition of California Newspaper Chain

This afternoon we are issuing the following press release:

BROOKLYN, N.Y., Feb. 19, 2009 - The financially troubled small press publisher Dumbo Books of Brooklyn, in what insiders describe as a last-ditch effort to avoid filing for bankruptcy, today announced that it was acquiring the California Newspaper Chain in a stock swap valued at an undisclosed amount.

Dumbo Books is a publisher of literary books headquartered in Brooklyn. The California Newspaper Chain's properties include its flagship Los Angeles World-Telegram & Star, The San Jose Journal-American, The Phoenix Citizen Record-Examiner and The Miami Globe-Democrat.

"We believe that this purchase will allow us a little breathing room with our creditors in this difficult economic climate," said Dumbo Books chief financial officer Richard Grayson. "It will give us added streams of revenue."

Shares of both companies closed lower yesterday.

Small Press Publisher Dumbo Books of Brooklyn, Converting to a Bank Holding Company, Announces Its Split into a "Good Publisher" and a "Bad Publisher"

Today we are issuing the following press release:

BROOKLYN, N.Y., January 29, 2009 - Small press publisher Dumbo Books of Brooklyn today announced that pending approval of its application to the Federal Reserve to convert into a bank holding company so that it will be able to accept deposits and be eligible for federal bailout funds, it will immediately split itself into a "good publisher" and a "bad publisher" in order to isolate toxic assets that could drive the company into bankruptcy and financial ruin.

Dumbo Books, the "good" publisher, will accept government bailout funds and refuse to lend any money to anyone.

Dumbo Books of Brooklyn, the "bad" publisher, will publish books by Brooklyn hipsters and Tao Lin's friends.

Richard Grayson Op-Ed Column in Orlando Sentinel: "McCollum's Dangerous Bankruptcy Bill"

Richard Grayson has an op-ed column in the Orlando Sentinel today (Sunday, October 26, 1997), "McCollum's Dangerous Bankruptcy Bill," opposing legislation introduced by U.S. Rep. Bill McCollum (R-FL) that would change the nation's bankruptcy laws in a way that would hurt consumers and favor the credit-card industry.

Richard Grayson's Funhouse column in the Hollywood Sun-Tattler: "Why a Visa Is a Passport to the Poorhouse"

Richard Grayson's Funhouse column in the Hollywood Sun-Tattler today Saturday, September 19, 1987) explains "Why a Visa Is a Passport to the Poorhouse."