With Barnes & Noble College already in the textbook rental business, along with the other big college bookstore operator Follett–which partnered with BookRenter.com–Chegg.com has turned to Borders for an “exclusive partnership.” While Borders does less business with college students, the company did launch an online Textbook Marketplace powered by Alibris in July. The Chegg textbook rentals will be featured in that marketplace. Chegg raised another $75 million in financing in September (making over $160 million in venture capital, and another $55 million in debt poured into the company) and Tech Crunch says they are estimated to have $130 million in […]
Bookstores
Joseph-Beth to Close Two Stores; New England Mobile Book Fair Looking for Buyer
Joseph-Beth Booksellers is closing branches in Pittsburgh and Charlotte, NC. Director of marketing Chad Showalter says with sluggish forecasts into 2011, “we decided we needed to make a significant change.”Post-Gazette In Newton, MA, New England Mobile Book Fair–“the largest independent bookstore in New England”–is looking for a buyer. Attorney Steve Gans emphasizes that the 53-year-old store is strong and believes there is “pent up demand” among prospective buyers. They are working with Paul Siegenthaler at Ridge Hill Partners, who worked on the recent sales of the Wellesley Booksmith and Harvard Bookstore. Siegenthaler says “It’s a way to reach the emotional […]
NY Appeals Court Allows Portions of Amazon Sales Tax Argument to Go Forward
Both sides are claiming victory in the long-running dispute between Amazon (and Overstock) and New York state over the collection of sales taxes. A court of appeals unanimously ruled that the “dismissal of the entire complaint was premature” and portions of the lawsuit can proceed. The court found that at least portions of the New York law are constitutional, but will let the plaintiffs present further arguments over whether online affiliates are considered to “solicit business” within the state, and whether or not those affiliates are “significantly associated” with the companies’ business in New York.CnetBTW
Bookstore News: One Saved, One Opens, Two to Close
Barnes & Noble has agreed upon a lease extension for a Fort Worth, TX store in University Park Village after indicating last month the outlet would close at the end of the lease. The mall manager says “we never wanted them to leave, as Barnes & Noble brings more to a property than simply rental income.”Star-Telegram In Bellingham, WA The Bookworm Burrow opens later this month, selling new and used children’s books.Herald But the news is not good for a couple of other stores. Chattanooga’s largest remaining independent store Rock Point Books will close in December after four years in […]
Borders Said to Plan Closing of LaVergne Distribution Center; Employees Speculate On Store Closings
Tennessee labor officials disclosed that Borders Group has begun eliminating another 96 jobs from their 564,000-square-foot distribution center in La Vergne, which the Nashville Post now says will close entirely on December 23. The company has had at least two rounds of layoffs at that facility earlier in this, attributed in part to the relocation of their returns center to Pennsylvania in March and a reduction in their customer call center in August. As of a year ago the center was reported to employ more than 600 people. We requested further clarification from the company, but have not heard back […]
An Update On Politics & Prose’s Sale Process, And A Look at A New Model Gaining In DC
Washington’s City Paper has a long look at the sale process underway at Politics & Prose. Talking to business appraiser and broker Jeff Jones, they say a typical successful bookstore would sell for approximately 15 percent of annual sales plus the value of the inventory, leading them to a rough estimate of tangible assets (before goodwill) worth $3 million. Complications include a lease that is set to expire in two years (which Barbara Meade is renegotiating now), and a cafe arrangement that expires in 2014. The big intangible is that “no accountant will ever truly figure out is how much […]