As readers know, we’ve been trying to wrap our heads around the stalking horse offer for the Najafi Companies to “buy” Borders for $215 million, which sounds more like an offer to “take” the company at little or no net cost. Yesterday the company filed an asset purchase agreement with the SEC, along with the provisional liquidation agreement with Hilco, Gordon Brothers and others in case the sale is not completed, which shed a little additional light on the financials. Indeed, Borders anticipates that an outright liquidation would produce more cash. The liquidators guarantee a minimum of 72 percent of […]
Bookstores
A Batch of Updates
Today’s headlines are mostly updates to yesterday’s stories and other ongoing tales: * The UK’s Office of Fair Trading has officially invited comment on Amazon’s deal to buy The Book Depository and whether it “may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom,” a process which “effectively starts our merger enquiry.” They will decide whether to refer the deal to the Competition Commission for formal investigation and report by the end of August. Release * In Australia, the remaining 16 company-owned Angus & Robertson bookstores that have not been […]
Plus A California Tax Update, Too
It appears that the sales tax battle between the state of California and Amazon (and other online retailers) has just begun with the signing of a new law last week. Not only does the law indicate that online “affiliates” create sales tax nexus, but it also says that operating subsidiaries within the state does so as well. Amazon runs its A9 labs in Palo Alto and Lab126 in Cupertino. A spokesperson for California’s Board of Equalization says “this could all take over a year” to resolve. The board would begin to pursue collections from online vendors if they do not […]
Pearson Buys Borders Australia and Angus & Robertson Web Businesses
In a different type of strategic acquisition, Pearson Australia has acquired the online bookselling and ebook businesses of the bankrupt REDGroup retail, which includes the online stores for Borders Australia and Angus & Robertson. (The sites are http://www.borders.com.au/ and http://www.angusrobertson.com.au/.) They intend to retain 16 staff members associated with the businesses, and will run the two sites separately for now. Pearson also has an agreement with REDGroup’s ebook partner Kobo. While it’s not entirely clear if they will continue to use Kobo as their vendor (REDGroup was an investor in Kobo as well), it will at a minimum give “customers continued […]
Amazon Has Deal to Acquire UK’s The Book Depository
Amazon has made yet another strategic acquisition that was just lying there within easy grasp of many others as well, bound to the extend the company’s strong hand in sales of English-language books around the world. They have an agreement to acquire the fast-growing UK-based The Book Depository, for undisclosed terms. Amazon vp of European Retail Greg Greeley says in the brief announcement, “Customers in more than 100 countries enjoy The Book Depository’s vast selection, convenient delivery and free shipping. The Book Depository is very focused on serving its customers around the world, and we look forward to welcoming them […]
Bookselling: Aus/NZ Distributor Scribo Shuts Down; Fireside Books To Close; and More
Fireside Books in Marshall, MI will close in August after just over four years in business. Battle Creek Inquirer Vanderbilt University will move its college bookstore to a new location this fall. The space was once occupied by Borders, but will now be operated by Barnes & Noble. Nashville Business Journal The Scribo Group, one of Australia & New Zealand’s largest independent book distributors, will close, leading to the loss of approximately 50 jobs. Managing director of Scribo owner Gordon and Gotch Australia Craig Davidson said in a statement that a number of factors, including an increase in offshore online […]