Textbook giant Cengage needs to restructure their huge debt load of over $5 billion, and the company has loomed for a while now as publishing’s next big bankruptcy/restructuring. After extending maturities on various tranches of debt last year, the WSJ reports that the company “in recent weeks has held discussions with Alvarez & Marsal,” a restructuring/turnaround firm, “though no decision has been made.” Their sources indicated “no restructuring appears imminent as the company weighs options for addressing its finances.” That has been the official company line for some time; as recently as last November, CFO Dean Durbin told analysts, “I […]
Finance
European Decision on Penguin Random House Merger Due In April
The European Commission updated its very brief public case notes on the pending antitrust review of the proposed merger of Penguin and Random House. The EC website now indicates a “provisional deadline” for their review of April 5.
Riggio Offers to Buy BN Stores, Subject to Negotiation
Following advance notice Sunday night in the WSJ, early Monday morning Barnes & Noble announced that Len Riggio “notified the board…he plans to propose to purchase all of the assets of the retail business”–comprising the BN superstores, and the BN.com web site. “Riggio plans to make the proposal in order to facilitate the company’s evaluation of its previously announced review of strategic options for the separation of its investment in Nook Media.” The price is subject to negotiation with the board, and “is currently contemplated to be comprised primarily of cash consideration and the assumption of certain liabilities of the […]
Pearson and Kaplan Both Launch Incubators for Hot Ed-Tech Startups
Two companies in publishing and education announced incubator programs this week to help vet and mentor ed-tech startups. Pearson’s program is called Catalyst and is designed to “identify the most promising education startup companies that share Pearson’s commitment to improving people’s lives through learning, and help enable them to break through on a global scale.” The will “match startups with Pearson brands to deliver pilot programmes and offer access to Pearson resources and product experts, including the opportunity to work closely with a Pearson brand over the course of the program.” Pearson release Separately, Kaplan has announced a three-month incubation […]
Germany Investigates Working Conditions of Temporary Amazon Employees; UK’s Daunt Returns to Criticizing His eBook Partner As “Job Destroyer”
Working conditions at Amazon’s seven distribution facilities in Germany has been in the spotlight since a German TV documentary investigation aired last week. The show focused on the treatment of temporary holiday workers–who are citizens of other European countries–and cited harsh practices from black-uniformed guards employed by security sub-contractor Hensel European Security Services (hired on Amazon’s behalf by an employment agency, the BBC says). Germany’s Deutsche Welle explains, “Instead of being employed by Amazon, as initially promised, the workers are employed by a temp agency, which normally means lower wages. While working, the temp workers are subjected to strict observation […]
Google Said to Plan Retail Stores; Reader’s Digest Files Pre-Packaged Bankruptcy
9to5Google cites “an extremely reliable source” as confirming that Google “is in the process of building stand-alone retail stores in the U.S. and hopes to have the first flagship Google Stores open for the holidays in major metropolitan areas.” The stores would sell Google-branded electronics–tablest, netbooks and phones. But the WSJ adds, “it isn’t clear when or where any stores would open, and one of the people said the Internet giant might not move forward with the plan this year.” The company already operates smaller in-store boutiques under the Chrome brand in Best Buy in the US and PCworld/Dixon’s in […]