When we reported Borders ever “disappointing” holiday sales earlier this month, we noted that the last time the chain did that poorly they changed chief executives–and lo and behold, after just a year in office, ceo Ron Marshall is departing, to take the ceo job at another unnamed publicly-held retailer. The company is initiating a search through Korn/Ferry, so clearly Marshall surprised the company by heading for the door. Chief merchandising officer Mike Edwards takes the interim ceo post, having worked at Borders since last September.Release
Bookstores
Bookselling: Controversies for Atticus and Borders, Amazon on The YA Decade
Atticus Bookstore and Cafe (near Yale University) has caused a stir with a policy requiring employees to speak English only in public areas. “Spanish is allowed in the prep area, the dishwasher area and the lower level. Let’s make our customers feel welcome and comfortable,” a copy of the policy says. In a statement owner Charles Negaro said: “We encourage the use of English because it’s an appropriate way to be most helpful to our customers. To continue to provide the best service possible, we try to help those employees who speak English as a second language by helping them […]
Borders Responds Further to Media Reports
Borders reiterated their own statements to Debtwire.com by further stating in their own release that “Borders has continued to pay its vendors in a timely manner, has not lengthened its days to pay, and has not been contacted by a group of publishers as alleged. Product is flowing to our stores for sale to customers. In fact, we have significantly increased book inventory in the fourth quarter compared to last year, a sign that we have continued to receive support from the vendor community. It is also important to note that we have not been contacted by any law firms […]
Firm Denies Representation On Borders Payments
A spokesperson for Lowenstein Sandler tells PW (but, as far as we can tell, not Barron’s or the Financial Times) that the two sources where claimed some publishers had hired the firm as counsel regarding Borders’ receivables were “incorrect.” Separately, we note that an online forum for Borders employees quotes a memo from ceo Ron Marshall after the chain reported disappointing holiday sales earlier this month: “Based on our results this holiday, we have some difficult changes to make in the days and weeks ahead within our organization. There is no way around it–without increasing sales, we are forced to […]
Small Publishers Retain Counsel to Collect Borders Payables
News service DebtWire.com reports via the FT that a group of small publishers has hired the bankruptcy group of Lowenstein Sandler as legal counsel “concerning mounting receivables” owed them by Borders Group. But a spokesperson says Borders “has continued to pay its vendors and is not aware of any material disputes related to its December 2009 payments.” One anonymous executive says “[Borders] have been extending payables… and most publishers have cut back on what they will advance.” The service reports “three major publishers said they received payments in full from Borders for the December period but three smaller firms said […]
Bookselling: Bhodi Tree Owners Still Hope to Sell Name and Inventory
In a follow-up piece on the plans of Bhodi Tree Bookstore owners Stan Madson and Phil Thompson once they complete the sale of the building that houses the store, the LA Times says that “they are searching for someone to buy the Bodhi Tree inventory and name and continue the store in a different location.” Madson says sales are about $2 million a year (down from a high of $5 million a year in the 90s), declining about 15 percent a year in each of the last two years.LAT