Romance Writers of America (RWA), a leading nonprofit trade association aimed at advancing romance writers’ careers, has declared Chapter 11 bankruptcy. This step comes as the organisation grapples with soaring debts and a significant drop in membership. Legal documents reveal that RWA owes approximately $3 million to hotels for its annual conferences and an additional $74,500 to various creditors.
Why are Romance Writers of America going bankrupt?
The decline began following controversies surrounding the organisation’s handling of diversity and racism issues, which led to a mass resignation of its leadership and rebranding of its prestigious RITA Awards.
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Membership plummeted from 10,000 in 2019 to about 2,000 today, severely impacting its financial stability. Many social media users have posted complaints about their behaviour in the past including writer Racheline Maltese, who said the group had been unwilling to “deal with member bigotry”.
In 2018, the organisation entered into a long-term agreement with Marriott hotels across the country for its annual conferences. However, as its membership numbers declined, it struggled to renegotiate these contracts amid falling attendance. The Anaheim Marriott is currently claiming over $700,000 due to insufficient room bookings from the last year’s conference.
Who are Romance Writers of America?
Founded in 1980 by Vivian Stephens, RWA has been advocating for better contract terms, transparent royalty statements, and timely payments for romance writers. However, Stephens was reportedly pushed out of her job, as the membership became disproportionately white.
Research indicates that 74 per cent of romance authors engage with each other at least once a week through online platforms, phone calls, emails, or in-person meetings. And half of these authors connect daily. However, the organisation’s struggle to inclusively represent all writers contributed to its downfall. In 2019, an ethics committee suspended author Courtney Milan, who is of mixed Chinese heritage, for calling another author racist. She called the depictions of Chinese women in Kathryn Lynn Davis’s Somewhere Lies the Moon a “f**king racist mess”.
Writers also complained after RWA promoted AI-assisted writing, especially as many continue to fear how the new technology will affect people’s livelihoods.
As Romance Writers of America navigates through bankruptcy proceedings, it faces the loss of further income with anticipated low attendance at this year’s conference in Austin and a hefty contract termination fee from the Philadelphia Marriott for next year’s event.