Barnes & Noble has been nominated as Motley Fool’s latest “Throw This Stock Away” candidate, saying “it’s hard to picture a superstore chain like B&N being more relevant in the future. The way we consume content is changing dramatically, and one only needs to look at something like the emptying bidding floor for rival Borders to realize that even bookworms aren’t coming around to save this tired niche,” says Rick Aristotle Munarriz. Specific slams include the lack of free wi-fi in stores, a “dud” fiscal first quarter, slow growth in online sales and even slower stock repurchases and the increased […]
Bookstores
Wordsmith Books Close to $25K Goal, Saves Store
After a two week campaign to raise money to save Decatur, GA-area bookstore Wordsmith Books from closing, owner Zachary Steele announced on the store’s blog yesterday that “we have raised enough capital to cover necessary operating expenses and give us a clear sight into the Fall.” In coming close to its $25,000 goal, Steele adds: “there is still much for us yet to do. We have operating expenses caught up and have made some traction into tomorrow, but we will still be working on paying down our debts for the foreseeable future.” He’s also hoping to have investment in the […]
Transitions Bookstore Closes
After 19 years, Transitions Bookstore & Cafe in Chicago has shut its doors. Owners Gayle Seminara-Mandel and Howard Mandel told the Chicago Tribune that they decided to close because they could no longer pay rent and meet payroll. “The readers went away,” Seminara-Mandel said, as more and more customers came for the free WiFi and fewer for the books.Chicago Tribune
B&N Won't Bid for Borders
It’s kind of funny, actually: Now the WSJ reports what we’ve been saying all along: that Barnes & Noble is not expected to bid for Borders, citing in part “the tight lending markets that likely would make it difficult to arrange bank financing” and high-lease prices on some of Borders’ stores. It was the Journal touting BN’s head fake in May that “it had assembled a team of senior executives and advisers to study the possibility of acquiring Borders” that gave Borders stock a pop even as the stronger Barnes & Noble has declined during the summer sell-off. (Both stocks […]
Identity Theft Ring Hit Retailers Including BN
The Department of Justice announced charges against 11 people in what they called “the single largest and most complex identity theft case ever charged in this country.” They say that the ring stole more than 40 million credit and debit card account numbers from computer systems at a number of major retailers–Barnes & Noble among them (along with TJ Maxx, Sports Authority, BJ’s, Office Max and more). “To the chagrin of the U.S. Secret Service, which handles many electronic fraud investigations, the trail led back to one of its own informants, Albert Gonzalez. Justice Department officials said Gonzalez served as […]
Atlanta-Area Bookstore Faces Closure
Wordsmiths Books in Decatur “is just two weeks away from possible closure” according to marketing director Russ Marshalek, and is having a benefit this weekend to raise funds. Owner Zachary Steele says they suffer from an event with a well-known author “that required a massive up-front investment that didn’t pan out” as well as debt from the higher rent at their previous location. “The reality of Wordsmiths is that, though it began with a great push, it did so in the wrong location. That location drained its resources and left a lagging parachute of debt that we have been trying […]