In a joint statement issued Friday afternoon, ReaderLink and Baker & Taylor announced they have “mutually” agreed to call off the proposed acquisition of B&T by ReaderLink.

Earlier this month, ReaderLink announced it had agreed to acquire substantially all of the assets of the library wholesaler and take on much of its staff, but that all of B&T’s financial obligations remained with the wholesaler. While publishers, suppliers, and others in the industry were relieved the troubled wholesaler would stay in business, many were concerned about how much of the outstanding obligations B&T owed publishers they would be able to pay following completion of the deal. Many publishers told PW they are owed significant sums by B&T.

The deal was subject to due diligence and customary closing conditions and had been due to close today. With the end of discussions, B&T and ReaderLink will continue to operate as separate enterprises.