The Worst Things For Sale is Drew's blog. It updates every day. Subscribe to the Worst Things For Sale RSS!

The Worst Things For Sale is Drew's blog. It updates every day. Subscribe to the Worst Things For Sale RSS!

The Worst Things For Sale is Drew's blog. It updates every day. Subscribe to the Worst Things For Sale RSS!

The Worst Things For Sale is Drew's blog. It updates every day. Subscribe to the Worst Things For Sale RSS!

The Worst Things For Sale is Drew's blog. It updates every day. Subscribe to the Worst Things For Sale RSS!

The Worst Things For Sale is Drew's blog. It updates every day. Subscribe to the Worst Things For Sale RSS!

The Worst Things For Sale is Drew's blog. It updates every day. Subscribe to the Worst Things For Sale RSS!

The Worst Things For Sale is Drew's blog. It updates every day. Subscribe to the Worst Things For Sale RSS!

The Worst Things For Sale is Drew's blog. It updates every day. Subscribe to the Worst Things For Sale RSS!

The Worst Things For Sale is Drew's blog. It updates every day. Subscribe to the Worst Things For Sale RSS!

The Worst Things For Sale is Drew's blog. It updates every day. Subscribe to the Worst Things For Sale RSS!

Posted by Victoria Strauss for Writer Beware®

Last week, the SFWA Contracts Committee issued this advisory.

SFWA Contracts Committee Advisory on No-advance Contracts

Recently, SFWA's Contracts Committee was made aware of a situation in which a well-liked publisher canceled the publication of a number of books it had contracted to publish. The publisher said the decision was made because of "unexpected changes" at the company. The Committee has reviewed the contract in use, which lacked a provision for such a cancellation. The Committee believes that canceling a contracted book that satisfies the author’s obligations is at odds with the spirit of the contract. Making this situation worse is the fact that these were no-advance contracts. Because no advance was paid, the publisher could make this decision without financial penalties. The authors' books, were, in effect, put in limbo for many months and the authors received nothing but an apology. Besides depriving the authors of the ability to sell the books elsewhere during this delay and putting off any income from the books into the indefinite future, the authors careers suffer as a result.

Publishers of all sizes may find themselves unable to live up to their contractual commitments for a wide variety of reasons, some of which could not have been reasonably anticipated. Hence, the Contracts Committee urges writers to think carefully about signing a contract that provides no advance, or only a nominal advance, while tying up their work for a lengthy period of time. Critically, payment of an advance gives an indication the publisher actually has the financial resources to meet its obligations. Publishers who do not pay advances or pay only nominal advances should include language in their contracts specifying how they can cancel a book and what happens if they should cancel a book, including a specified amount of compensation to the author.

SFWA Contracts Committee
October 25, 2019

Legal Disclaimer: The contract alert should not be understood to be legal advice. The issues presented by contract law are complex. Authors should consult a competent attorney familiar with the business of publishing as well as contract law before signing any contract.

The publisher in question is Fireside Press.

The cancellations were first reported on October 8 by Jason Sanford in his Genre Grapevine column, and discussed on October 9 in Mike Glyer's File 770. Fireside publisher Pablo Defendini issued a statement on October 8, in which he revealed that the five canceled contracts were for manuscripts that were "unpublished and unannounced", and attributed the cancellations to disruptions caused by editorial departures.

Author Meg Elison, one of the canceled authors, did not find this to be a sufficient explanation...and she was livid.



A few days later, Defendini issued an apology. "I can see now how [the cancellation emails] read as callous, uncaring, and dismissive of the authors’ feelings," he wrote. "I’m very sorry for that....My behavior was not consistent with Fireside’s values, and I deeply regret it."

Beyond the Contracts Committee's general warning about no-advance contracts (and if you're part of the small press world, you know how common these are): multiple simultaneous contract cancellations are not frequent or normal, and can signal trouble beyond whatever the publisher offers as an explanation (if it explains at all). Ditto for a publisher that suddenly starts offering to revert rights on request.

Fireside's situation also highlights the risks of signing with a publisher that's essentially a one-person operation (as Defendini admits in his apology). With the best will in the world, the publisher can be sidelined by a single bad event (personal or professional), leading to glitches, errors, and delays in scheduling, payment, and more. Writer Beware's files are stuffed with such stories.

Troubled publishers do recover, or at least hang on. Month9, which canceled dozens of contracts in 2016, is still publishing, as is Permuted Press, which axed an undisclosed number of titles in 2015 (both publishers cited overstocked lists, though in both cases there were other issues as well). In the short term, though, if a publisher is or has been actively shedding writers, it's best to hold off on submitting until it's clearer what's going on.

Posted by Victoria Strauss for Writer Beware®

If you're not part of the horror or speculative fiction community, you may not be aware of the scandal that over the past two weeks has engulfed ChiZine Publications, a (previously) highly-regarded Canadian independent publisher.

In September of last year, several authors, including Ed Kurtz, made a complaint to the Horror Writers Association about long-overdue royalties at ChiZine. On November 5 of this year, after the complaint became public knowledge, CZP posted a statement on its Facebook page, claiming that Kurtz's royalties were "currently paid in full" and that "Any other monies he might be due will be paid on his next royalty statement". Kurtz's response, posted by his partner on Facebook a day later, was blistering:

The statement from Chizine neglects a number of salient facts, such as the moment in July 2018, at Necon, when I explained to Brett Savory that my partner was facing a layoff, our cat was ill, we were in severe financial distress, and I had *never* been paid a single cent of royalties in what was at that time almost two years for a moderately successful book. He actually grinned and said, "Things are hard for everyone right now" before walking away. The following morning it was reported to me that Sandra was loudly complaining in the dealer room about me having asked about my royalties, and of course the two of them went on a whirlwind trip around the world a few weeks after that, showing us all that things weren't so rough for them, after all.

In fact, I'd asked after my royalties several times and was rebuffed or given excuses every single time (usually something wrong with their accounting software or something similar, which I later learned they’d been saying to authors for years). I only went to the HWA after several other frustrated CZP authors (one of whom hadn't been paid in five years!) strongly encouraged me to do so. I expressed fear of bullying and/or retaliation, and some of these authors promised me they'd have my back (they didn't). And yes, a lot of us got paid through my efforts, though it is untrue I'm paid in full. I was never paid royalties for the months of my first year of publication, 2016, though CZP continues to claim I was. I just gave up on this.

Kurtz's experience was not isolated.


Between 2010 and 2015, Writer Beware received a handful of complaints (fewer than five) about ChiZine from authors who cited months-late royalty payments or long waits for contracts. Because the complaints were so few, and also because the authors all did eventually receive their payments or their contracts (though in most cases only after persistent prodding), it wasn't clear to me whether the tardiness indicated a pattern of problems, or was the kind of occasional glitch that can afflict otherwise reputable small presses with small staff and tight finances.

As it turns out, those few complaints were just the tiniest bubbles drifting up from what appears to be a roiling ocean of dysfunction.

Following Kurtz's public response, CZP authors and staff began to come forward with their own experiences--a tsunami of serious allegations including non-payment (some staff say they were never paid for years of work), extremely late or missing royalty payments (years in arrears in some cases; many authors report having to fight for what payment was received), erratically-produced royalty statements (CZP breached at least some of its own contracts by sending out royalties once a year instead of bi-annually--more on that below), missed pub dates, broken marketing promises, and financial mismanagement--especially concerning, since a big chunk of CZP's budget comes from grants and subsidies. (Former CZP staff member Michael Matheson has written a pair of illuminating posts on CZP's finances, including its treatment of grant money and habitual financial distress.)

Staff and authors also--in multiple, strikingly similar posts and complaints, including some received by Writer Beware--cite a toxic work culture that featured bullying, intimidation, sexual harassment, racism, gaslighting, and more. Several of those who contacted me told me that they felt CZP operated "like a cult," with charismatic leaders at the top who were admired and feared in equal measure, and whom many dared not defy.

This account only scratches the surface. For much more:

• Jason Sanford's Genre Grapevine column discusses the allegations against CZP, with quotes from authors he interviewed; and also looks at CZP's book sales, with data from Nielsen BookScan.
• Two posts from File770, plus one more
• A roundup of coverage from High Fever Books
• Tonya "Tricia" Liburd's Twitter thread compiling statements and stories

On November 11, CZP's founders, Sandra Kasturi and Brett Savory, posted a statement on the CZP blog and Facebook page indicating that they have decided to "step down." Although the statement mentions financial issues ("we have taken a short-term personal loan to bring payments up to date"), it doesn't address the many other complaints that have been leveled against the company--and, notably, does not include an apology.

The response has not been kind.


Despite all of the above, there are still those who continue to defend CZP, and to brush off the statements by writers and staff. For example, this, from editor Stephen Jones (Jones's post has been removed; this is a screenshot posted to Twitter):

What stands out for me here is not just the skepticism that whistleblowers always have to face (and which, even when the publisher doesn't try to intimidate or engage in reprisals, makes it so much harder for whistleblowers to come forward), but the defense of unprofessional business practice--not just by CZP but, apparently, by small press publishers in general. Small presses are doing something great for writers and readers, so we should "cut them some slack" when they fail to pay, or don't fill book orders, or miss a pub date, or engage in some other kind of behavior that has a negative impact on staff and authors. That's "simply the nature of small press publishing." Deal with it!

It's a really common argument. I can't tell you how often I've seen some version of it--not just from toxic or troubled publishers, but from the writers they are screwing over. But it is bullshit. Complete and utter bullshit.

No matter how "worthy" a publisher may be, that does not give it the right to abuse its writers or its staff--whether by accident or design. Publishers function in the realm of art, but they also need to function like businesses--not like cults of personality, not like sinecures, not like kitchen-table hobby projects where it doesn't really matter that they know little about publishing and have never run a business as long as they've got good intentions. You don't get a pass because you've got a noble goal. You don't get a pass because independent publishers are struggling and we need more of them. You don't even get a pass because you're putting out good books from disenfranchised authors. You need to run your business right, and treat your writers and your staff right, or you have no business calling yourself a publisher.

Which brings me to my next point. The scope and range of what has apparently been happening at ChiZine is bigger than usual (and having seen as many small press implosions as I have over the years, it's amazing to me that it took so long for the scandal to break). But it's important to emphasize that it is not an isolated occurrence. Contract breaches, financial malfeasance, even the kind of harassment and gaslighting and dictatorial behavior that CZP authors and staff describe--all are rampant in the small press world. Just go back through a few years of the entries on this blog, and you'll see plenty of examples.

I don't mean to tar all small presses with the same brush. There are, it's important to acknowledge, many small and indie publishers that operate with complete professionalism and do all they can to treat their authors right. But there is a huge, huge problem in the small press segment of the publishing industry, and we don't do writers--or readers--any favors in dismissing or downplaying or making excuses for it.

I'm not the only one who is making this point. Silvia Moreno-Garcia, who had payment issues with CZP and also has experience running a micro-press, addresses the issue in a Twitter thread:


In a blog post, former CZP staffer Michael Matheson responds to those who would like to see publishers like CZP dealt with more kindly:

And, commenting on the Chizine situation, writer and reviewer Gabino Iglesias points out:


I agree 100%. But I'm not holding my breath.


The scandal has unfolded very quickly but there've already been consequences. High Fever Books reports "a mass exodus" from CZP, with authors requesting rights reversions for their books, and withdrawing stories from CZP's forthcoming Christmas anthology. The Ontario Arts Council, one of CZP's funders, has recently removed CZP from its list of grant recommenders. And SFWA has issued a statement:



Finally, some semi-wonky publishing stuff.

There's been some discussion of irregularities with CZP's royalty statements. I've seen a number of these, kindly shared with me by CZP authors, and while they're somewhat of a chore to figure out and are missing some information that ideally should be present, the numbers do add up. However, a few things are sub-optimal.

- CZP's contract boilerplate empowers the publisher to set a "reasonable" reserve against returns. There are no specifics, so it's basically up to the publisher to decide what "reasonable" is.

For CZP, "reasonable" seems to mean 50%. This seemed high to me, so I did a mini-canvass of literary agents on Twitter. Most agreed that smaller is better--maybe 25-30%, though some felt that 50% was justifiable depending on the circumstances. They also pointed out that the reserve percentage should fall in subsequent reporting periods (CZP's remains at 50%, unless boilerplate has been negotiated otherwise), and that publishers should not hold reserves beyond two or three years, or four or five accounting periods (CZP has held reserves for some authors for much longer).

(If you're unclear on what a reserve against returns is, here's an explanation.)

- Per CZP's contract, royalties are paid "by the first royalty period falling one year after publication." What this means in practice (based on the royalty statements I saw) is that if your pub date is (hypothetically) April of 2016, you are not eligible for payment until the first royalty period that follows your one-year anniversary--which, since CZP pays royalties just once a year on a January-December schedule, would be the royalty period ending December 2017. Since publishers often take months to issue royalty statements and payments following the end of a royalty period, you'd get no royalty check until sometime in 2018--close to, or possibly more than, two full years after publication.

In effect, CZP is setting a 100% reserve against returns for at least a year following publication, and often much more. This gives it the use of the author's money for far too long, not to mention a financial cushion that lets it write smaller checks, since it doesn't have to pay anything out until after returns have come in (most sales and most returns occur during the first year of release).

I shouldn't need to say that this is non-standard. It's also, in my opinion, seriously exploitative.

- And...about that annual payment. It too is non-standard--even the big houses pay twice a year, and most small publishers pay quarterly or even more often. It's also extra-contractual--at least for the contracts I saw. According to CZP's boilerplate, payments are supposed to be bi-annual after that initial year-or-more embargo. The switch to annual payment appears to have been a unilateral decision by CZP owners for logistical and cost reasons, actual contract language be damned (I've seen documentation of this).

- A final wonky contract point: CZP's contract boilerplate mentions royalty payments (as in, they're bi-annual)--but does not, anywhere, mention royalty statements.

A publishing contract absolutely needs to bind a publisher not just to pay, but to account royalties on a regular basis (whether or not payments are due). If there's no contractual obligation for the publisher to provide royalty accounting, it may decline to do so--and that's not theoretical, I've gotten more than a few complaints about exactly this. Just one more reason to get knowledgeable advice on any publishing contract you're thinking of signing.

Posted by Victoria Strauss for Writer Beware®

Beginning on Friday, February 8, dozens of authors with mystery publisher Henery Press received some version of this email.

Dear ________,

Before entering 2020, we felt it prudent to review future projections for _______ series, taking into consideration recent releases and overall performance. To provide an unbiased professional opinion and guidance in our 3-year strategic plan, we hired a consulting firm with experience in the industry. This allowed us to analyze not only your specific series, but also the competitive landscape and industry as a whole.

Unfortunately the sales of _______ series do not justify the publication of future titles beyond 2020. We know this is disappointing. The market has become beyond saturated (especially in mystery fiction), with all leading indicators pointing to even more intense competition for consumer dollars in the next cycle and beyond....

Although we don’t have a pathway forward with your new titles, we will continue to sell and support your backlist titles as usual under the terms of our original publishing agreement. To be clear, we will not be reverting the rights on any of your already published title(s), only future titles specifically outlined in the addendum to follow in the next week.

A number of the cancellations affected books that had been completed, turned in, and scheduled for publication, with some authors having already made promotional plans. Others interrupted series whose first installment hadn't yet been published--with Henery holding on to the yet-to-be-published book and reverting rights to the rest. Cancellation of a series before it's completed can be tough--another publisher may not want to buy into a series mid-stream, and while followup titles can be self-published, it's difficult to promote a series when it's split up like this.

The cancellations came out of the blue (nothing had been said about any strategic plan or consulting firm). But while some writers were blindsided, others weren't hugely surprised. Although they have praise for the company's early days, Henery authors say that problems have been increasing for some time, with staff departures (interns are reportedly used to do a lot of the editing, with sometimes substandard results), late royalty checks and reports (several authors told me that they feel there are discrepancies in their sales figures), diminishing marketing (according to multiple writers, virtually no promotional support is provided), ordering problems (writers cite non-returnability and nonstandard discounts), and difficulty with communications.

"Over time," one author told me, "Henery Press’s business model started to look more like a company that assists with self-publishing and less like a real publisher." (In fact, Henery uses CreateSpace for printing, and Barnes & Noble lists Henery ebooks as "indie".)

I've gotten a variety of additional complaints, which I'm not able to share here because they could compromise confidentiality. There seems to be considerable fear among Henery authors that they will be penalized for speaking out--which may be why almost no word of the cancellations has escaped. There's also the gag clause in the rights reversion addendum that authors are receiving:


One writer told me, "HP payback tactics (they're so vindictive) are hell. [Authors are] afraid if HP even suspects they've contributed, the books they have will go down." I truly wish this weren't such a common component of publisher implosions.

So is Henery imploding? Mass cancellations are never a good sign, and often indicate financial distress. Some Henery authors don't feel that's the issue, though, or not the only issue: they speculate that the owners intend to retire, and are keeping the company alive in order to retain the income stream from existing titles.

I emailed Henery's owner, Art Molinares, for comment. As of this writing, he hasn't responded.

Mystery Writers of America (where Henery is listed as an Approved Publisher) is aware of the situation, and is monitoring it. If you've been affected, you can contact MWA here. Be sure to put "Henery Press" in the subject line. All communications are confidential.

I will post updates as I receive them.

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