Divine Library Services, one of the largest subscription agencies in the United States, has stopped processing orders in the wake of an apparent financial failure. The century-old agency—known as Faxon until 1999, then as RoweCom until it was acquired in November 2001 by software-and-services vendor Divine—recommended in a December 20 announcement that its clients find “alternative sources for your materials” because it has “not been able to place or make payments for the substantial majority” of its 2003 orders.
Information Today reported December 20 that prepayments to the agency could be stuck in financial limbo for months, with some customers losing both funds and orders. However, the company announced that three publishers—Elsevier, John Wiley, and Blackwell—have agreed to distribute journals through January to DLS subscribers.
Meanwhile, the Birmingham, Alabama–based Ebsco Industries has signed a letter of intent to acquire the DLS European operation, and Divine announced it is “in active negotiations with Swets Blackwell” for the sale of some or all of its subscription operations worldwide.
Some executives at DLS have left, including Senior Vice President Jim Krzywicki, who was former chief operations officer at RoweCom. Information Today said that the main office in Westwood, Massachusetts, was down to no more than 100 employees, while the Canadian and London offices have been closed.
Divine has established an ad hoc committee of publishers and customers to search for solutions. Libraries interested in participating can contact the committee at adhoccommittee@nyc.rr.com.
Posted January 6, 2003.