Borders ceo Mike Edwards provides a “rare interview” to the Ann Arbor News, trying to obtain through the press the financing from publishers that he isn’t getting through direct negotiations. Big publishers remain unconvinced that there is a sound business reason for them to carry all the risk and finance Borders’ attempt to re-emerge from bankruptcy (so that Edwards and his team can collect bonuses). Edwards pedals it as a “shared risk scenario” but it’s not clear who else besides the creditors would be taking any risk. (The implication is that he’s still using the prospect of Borders liquidating as […]
Bookstores
Barnes & Noble Revises Credit Line; Goldman Sets $14 A Share Target
In other bookseller financial news, Barnes & Noble said they have amended their $1 billion line of credit to lower their financing costs and increase their borrowing capacity. CFO Joe Lombardi says in the release, “Amending our revolving credit facility enables us to lower our anticipated cost of capital and enhance our financial flexibility as we continue to transform the company and execute our strategic plan. We appreciate the strong level of support we received from our lenders.” They will write-off $6.4 million in deferred financing fees in the current fiscal year, which ended April 30, and say that in […]
Borders Tallies Their Record Losses, Before and After Bankruptcy
In two different statements filed with the SEC, Borders has further cataloged the many ways in which they excel at losing money. Let us count the ways: In the most recent operating month under bankruptcy, between February 27 and March 26, Borders preliminary calculation is that they lost $24.3 million on sales of $91.4 million and “other revenue” of $73.8 million. In the prior month, between January 30 — two weeks before filing for Chapter 11 — and February 26, the company lost $28.3 million, on sales of $127 million (and other revenue of $38.5 million). Yes, that’s a loss […]
Bookselling: Labyrinth Will Close; BN College Adds Facebook Initiative
Further to yesterday’s short, the co-owners of Labyrinth Books in New Haven have confirmed that the store will close May 31, blaming the challenge of managing the store while living in Princeton, NJ. The Yale Daily News says they write that they “are finalizing plans for a different independent book retailer to move into the New Haven space that will be left by the current store.” Another six Angus & Robertson stores will close over the next four weeks as part of the reorganization of REDgroup. Barnes & Noble College has announced what they call a “social commerce platform”–which means […]
Bookselling: Court Approves Davis-Kidd Deal; Monobookism; and More
Yesterday a Lexington bankruptcy court tentatively approved the results of the Joseph-Beth auction pending the entry of a sales order that’s expected Wednesday afternoon. The Lexington Herald-Leader reported the deal will close at the end of business Thursday, with the new owners taking over operations Friday morning. It puts three stores in the hands of Booksellers Enterprises for total consideration worth $3.98 million, with Joseph-Beth coo Mark Wilson serving as ceo of the new operating company. Liquidators Gordon Brothers bought the Virginia store for $672,000, and will sign the space over to Books-A-Million. Founder and former owner Neil van Uum’s […]
Borders Judge Explains Bonus Approval
As promised, bankruptcy judge Martin Glenn has filed a lengthy opinion explaining why the revised Borders executive bonus plan eventually won approval. In the final version, Judge Glenn says the “maximum total cost” of the two incentive plans is $3.9 million. At least 47 senior corporate employees have left the bookseller since the company file for bankruptcy, and “store closings and further attrition” have taken the overall workforce from approximately 16,000 full- and part-time employees down to roughly 11,000. Judge Glenn warns that successful reorganization won’t come easily: “Since the ultimate fate of many recent retailer debtors has been liquidation, meeting […]