A new filing in federal bankruptcy court yesterday indicated how much money Borders paid creditors in the 90 days leading up to its Chapter 11 filing on February 16, and how those payments were dispensed. Looking at the largest publishing houses, Random House and Penguin received approximately $24 million, but Penguin received two bulk payments of about $12 million on November 19, while Random collected payments through February 3, though nothing more sizable than $1.6m received on December 24. HarperCollins received $14.1 million, with $12.5m paid by December 9, and nearly all of Macmillan’s $6.8m paid was received from Borders […]
Bookstores
A Look at Borders’ Liquidation Process as More Leases Are Rejected
Bloomberg takes a closer look at the Borders liquidation process and how it’s being handled by Hilco, who agreed to pay Borders 85.75 percent of the “cost value” of all merchandise, somewhere between $180.6 million and $204 million. But one of Hilco’s competitors in the liquidation auction, Great American Group director Scott Carpenter, bowed out because the firm “didn’t think you could achieve those values and make a profit.” Previously Borders told the bankruptcy court they expected liquidation sales to bring in about $175 million. Bloomberg In addition, federal bankruptcy court filings indicate the approval of nine Borders lease rejections in […]
BKS Stock Rises on Rumored Private Equity Interest; 3 Million Nook Colors Reportedly Shipped
Barnes & Noble‘s plummeting stock price of the past week or so – no doubt helped by a report that the company’s sale prospects appear to be dimming — reversed course yesterday, as shares rose 5 percent to 9.71 on renewed rumors the company might be taken over by private equity. Supply chain sources also indicate that BN has made and/or shipped approximately 3 million Nook Color units, with sales topping 1m in North America for the fourth quarter of 2010 and between 600,000 and 700,000 units between January and the end of February this year. The same sources also […]
Former Washington Post Reporters Will Buy Politics & Prose
Nearly a year after announcing the store was for sale, Politics & Prose will be under the new ownership of former Washington Post reporters Bradley Graham and his wife Lissa Muscatine. Barbara Meade and David Cohen, the widower of Meade’s fellow owner Carla Cohen, chose the couple to buy the store after entertaining five or six bids and determining Graham and Muscatine were “uniquely qualified to extend the store’s reputation as a gathering place for ideas and civic discourse.” At a meeting with store staff, Graham said Politics & Prose has “a very special culture here, a culture we want […]
BAMM Enters New Credit Agreement As Executives Add Stock
Books-A-Million stock hit a 52-week low last week on the heels of disappointing fourth quarter and annual earnings, following a pattern similar to Barnes & Noble’s though less dramatic. Shares fell more than 8 percent on Friday, closing at $4.10 a share, and were down 20 percent in the three days after their earnings report. A number of company executives added shares at the bargain price of a penny per share according to a series of SEC filings, by exercising options. CEO Clyde Anderson led the group, adding 116,840 shares, boosting his total holdings to more than 1.8 million shares. The […]
Borders Asks Court to Authorize $8.3 Million in Executive Bonus Payments
In papers filed last week, Borders asked a federal bankruptcy court to authorize as much as $8.3 million in bonus payments to company executives – including up to $1.7 million to CEO Michael Edwards. Seventeen executives are covered by the largest bonus program, which could add between $4.7m and $7.1m, while a second $1.2 million bonus program covers 25 “director-level” managers that court papers say are “critical to the debtors’ reorganization and to ongoing business.” The company said that 70% of its top executives have been with Borders for 18 months or less, and that bonuses were not paid at […]