In addition to the bankruptcy’s effect on book sales and publishers’ respective bottom lines, Borders’ Chapter 11 filing will have a domino effect on a number of related players, among them: LandlordsPublicly-traded Michigan-based Agree Realty was often cited as being in the most precarious position, because Borders stores made up approximately 20% of their total real estate portfolio (and was as high as 27%). Yesterday Agree released a statement indicating that 5 of the 14 Borders properties it owns (which includes company headquarters in Ann Arbor, up for sale, and two buildings not currently occupied by Borders) are slated for […]
Archives for February 2011
Australia/New Zealand’s Dominant Bookstore Group Also Files for Bankruptcy
Bankruptcy is spreading through the world English-publishing world as Australia and New Zealand’s leading bookselling organization RedGroup Retail has been placed into voluntary administration by private equity owners PEP. The group comprises Angus & Robertson in Australia (with over 160 stores), Whitcoulls in New Zealand (with 65 stores), Borders in Australia (26 stores), New Zealand and Singapore, and the Calendar Club in both Australia and New Zealand. The combined entities employ approximately 2,500 people. The Age reported today that REDgroup “was forced to call in administrators to the businesses this afternoon following a board meeting.” All stores are slated to […]
Profits on the Rebound at Simon & Schuster; Magazine Says Random House May Slide
Sales at Simon & Schuster rose in the fourth quarter, up 5 percent to $231.7 million, but even with that improvement sales for the full year fell just below last year’s weak total, at $790.8 million falling $2.7 million below 2009’s mark. But strong fourth quarter profits of $20.1 million in OIBDA (up from $15.2 million a year ago) lifted income for the full year to $71.8 million, a 33 percent improvement over 2009. Operating income showed similar improvement, at $17.9 million for the fourth quarter, and $64.6 million for the full year. The company did record an unspecified “increased […]
People, Etc.
Hachette Book Group has reorganized its Online Marketing efforts. Effective today, Kelly Leonard will be VP, Executive Director, Web Strategies, responsible for responsible for the strategy and ongoing development of all HBG corporate and product websites. Associate Director Online Marketing Brad Parsons and Online Marketing Coordinator Brianne Beers move to Grand Central and report to Jennifer Romanello. Anna Balasi joins Little, Brown as Online Marketing Associate, while Sarah Reck will continue to work as a Web Publicist on Center Street titles, but will now report to Harry Helm. Sally Kim will join Touchstone as editorial director, reporting to publisher Stacy […]
Ingram Isn’t Shipping to Borders for Now
Though Ingram had supplied Borders with books even after the bookseller stopped paying publishers, the wholesaler tells us via spokesperson Keel Hunt that “Ingram is currently not shipping to Borders as they are working through the bankruptcy process. We look forward to helping them through the restructuring as the process allows.” Separately, Ingram ceo Skip Prichard said in a general statement earlier on Wednesday, “This is regrettable news for the whole book industry, obviously, but I hope the filing can give Borders a chance to reorganize, re-define and re-emerge to be successful for a long time to come. Borders and […]
Judge Approves Borders’ Financing–But They’re Missing A Budget
Chief Judge Arthur Gonzalez approved a number of Borders’ initial motions at the end of the day on Wednesday, including one that allows the bookseller to access $400 million of their $505 million in debtor-in-possession financing to fund operations. Borders’ attorney David Friedman “said Borders needs the $400 million on an interim basis to cover immediate expenses if it’s to keep operating and reorganize”–which makes you wonder how they are going to fund anything more than bare subsistence. A number of attorneys for creditors objected to portions of the loan agreement–particularly distressed that Borders had not submitted a detailed budget […]