After recently announced cuts of another 100 jobs at their Tennessee distribution center, Borders Group has cut staff again, returning to the rolls at their Ann Arbor headquarters. Spokesperson Mary Davis confirmed their were “job eliminations” to the Ann Arbor newspaper but declined to indicate a number. There have been approximately 650 people working out of the Ann Arbor offices, after 88 corporate workers were laid off in January. Davis said: “As we aggressively work to restore the financial health of the company, we have reorganized core areas of our business to ensure that we have the necessary resources in […]
Bookstores
More Concerns about Australia/New Zealand Bookselling Giant; McNally Jackson Still Waiting for Espresso to Brew
We noted in late July that RedGroup–the dominant bookseller in Australia and New Zealand under the Whitcoulls, Angus & Robertson and Borders ANZ operations–was talking to its lenders about getting a waiver from an expected breach of their borrowing covenants. (Even so, they were reportedly projecting ebitda of approximately $25 million AU for their fiscal year ending in late August.) A new story in Crikey cites industry sources whom claim the group “has been forced to jack up prices, increase returns and extend trading terms with its suppliers.” One anonymous publisher says the chains have asked for 120 days to […]
Today’s Barnes News: Riggio’s eVision, Burkle’s Friends, Cramer, and Private Equity
After finishing the day up almost 20 percent on volume of close to 6 million shares, Barnes & Noble stock slid slightly in early trading this morning while markets consider the board’s news (and as the overall market itself declined). For some people, when James Cramer advises Mad Money viewers to sell Barnes & Noble stock (“let’s take some profits in that one”–? what profits?), that’s a buy sign. The WSJ offers a closer look at chairman Len Riggio’s electronic ambitions and the extent to which he has re-engaged in the business overall this year. “By putting together an investment […]
Bookselling: Texas’s Ambitious Legacy Books to Close August 14
One of the biggest and flashiest independent bookstores to open in years–Legacy Books in Plano, TX just north of Dallas–will close later this month. Managing partner Teri Tanner “said the store’s investors made the decision to close.” The 24,000-square-foot store opened in the midst of the economic collapse, in November 2008. As the Dallas Morning News writes, “it was one of a few independent bookstores of its size to open in the US in decades.” Tanner tells the newspaper she has started Double T Consulting, a company “dedicated to pursuing independent bookselling and other retail opportunities” in North Texas. They […]
The Barnes & Noble Update
Following yesterday’s after-marker news that the board of Barnes & Noble will explore “strategic alternatives,” the company’s shares are experiencing the anticipated heavy trading volume this morning, with volume of nearly 3 million shares in the first hour alone. At that point, the stock was up approximately 20 percent over yesterday’s close. After the board boosted the stock’s prospects, Goldman Sachs thoughtfully upgraded their rating from sell to neutral, and changed their 12-month price target from $12 a share to $15 a share. Analyst Matt Fassler still hates the company and they “do not see compelling value in the business,” […]
BN, Part Two: Who Would, Or Wouldn’t, Buy?
As noted in our first piece, the media and interwebs are full of all kinds of notions on what happens next with Barnes & Noble. To be clear, this piece is entirely speculation, but we do have our reasons. First let’s cross of some of the companies that won’t be bidding: AmazonA tech company and etailer that trades at a PE of over 50 would enrage investors and shed billions of dollars of market cap by picking up an outfit like Barnes & Noble. Plus it would give them undeniable sales tax nexus in all 50 states, producing what many […]