Aaaah, I think this is where the law might be more complicated than it seems. I suspect if Flom offers a service where an individual brings their copy of the book for alteration then it would be a legal service because the book belongs to the individual in question and they can do what they want with it.
However, I suspect if Flom is purchasing their own copies, changing the cover and selling them as a new product, I think this would be a different legal matter and co-opting existing copyrighted material. :o)