Callaway Arts & Entertainment, a publisher that produces books that offer value in a physical format, has filed for Chapter 11 bankruptcy protection in the Southern District of New York bankruptcy court. The company, which tried to counter trends in the book industry by creating books that emphasized the advantages of physicality, has been unable to compete with digital formats. Mass market unit sales for mass market units have dropped from 131 million in 2004 to 21 million in 2024, a drop of about 84%, according to Circana BookScan. Callaway also faces challenges as an independent publisher, as five major companies control nearly 80% of the U.S. trade market. The industry has also been hit by inflationary cost pressures and increased costs, which have negatively impacted profits.