Barnes & Noble’s third quarter results, reported this morning, show the trickiness of navigating this transitional retailing (and etailing) climate. Following their best holiday period in years, sales rose 7 percent and profits were within the company’s own guidance. Both measures were below analysts’ expectations, though, with profits down from a year ago, and the company is suspending its quarterly dividend of twenty-five cents per share. The dividend reduction was expected long ago, since the company is investing in its digital strategy and has financing the dividend through borrowings rather than earnings. But the combination of lower earnings and no […]
Bookstores
Bookselling: Albuquerque’s Page One Files for Chapter 11
Page One in Albuquerque, N.M. filed for Chapter 11 bankruptcy protection on February 11 after 30 years in business, citing assets of $799,183 and liabilities of $1,371,258, of which $474,885 are unsecured claims. In addition, “amounts unknown” are due to more than 50 creditors. Court documents filed by owner Steven Morado Stout indicate that “after any exempt property is excluded, and administrative expenses paid, there will be no funds available for distribution to unsecured creditors.” Several publishers are among those unsecured creditors, including the University of Mexico Press, reportedly owed $12,000. In a subsequent email to customers, Stout added “in […]
Lots of Answers–Or Questions–From Australia
Australian media abounds with speculation on what brought down the REDgroup bookselling empire–which has debts of over $130 million (AU). The company was previously thought to comprise over a quarter of Australia’s $1.5 billion book business. (A Smart Company story in late 2009 said that annual sales for the privately-owned chain had risen to $685 million.) From the trade come a variety of answers: “REDgroup chairman Steven Cain blamed competition from foreign retailers like Amazon, who avoid charging Australian GST and duty taxes,” in one report. CEO of the largest competitor standing Dymocks, Don Grover tells the SMH, “The real […]
Court Approves Borders’ Store Closure Plan In Time for President’s Day Sales; BAMM Eyes Some Locations?
After a brief postponement from Wednesday, the bankruptcy court approved Borders’ store reduction program and the chain has finalized agreements with liquidators. Going-out-of-business sales will begin on Saturday, February 19, which allows Borders to take advantage of President’s Day Weekend, and the company expects the 200 previously identified stores to close by the end of April. Hilco Merchant Resources, SB Capital Group, Tiger Capital Group and Gordon Brothers Group won the bidding to handle the liquidation sales, striking a deal that Bloomberg reports would guarantee almost 86 percent of the cost value of merchandise at the stores. Merchandise that Borders […]
Non-Bankruptcy Bookstore News
Four St. Louis bookstores–Left Bank Books, Pudd’nhead Books, Main Street Books and Subterranean Books (which has said it might have to close this year)–have formed the St. Louis Independent Bookstore Alliance. They have a Facebook page, a joint website in the works, and are planning a bookstore tour. And they expect to welcome other area stores to the alliance. Nikki Furrer of Pudd’nhead Books says “This is a chance for all of us to promote St. Louis and stores that people here have not heard of.” Pasadena’s Vroman’s is “very sad to see Borders go, but we’re also excited for […]
Who Else Benefits – Or Suffers – From Borders’ Bankruptcy?
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 […]