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 […]
Bookstores
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 […]
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 […]
Borders: What Publishers Are Saying, and Whether Business Resumes
So far only the largest publisher, Penguin Group, has commented on the record on Borders’ bankrupty filing. They said in part, “Penguin hopes that Borders will emerge from this process as a smaller but stronger book retailer, and will work closely with Borders management to support this transition. Penguin has been following developments at Borders very closely for many months and has taken appropriate steps to mitigate the financial impact of the company’s bankruptcy on Penguin.” Simon & Schuster’s parent company CBS reported fourth quarter (and full-year) earnings after the close of the market today. As we report separately, they […]