Borders lawyer Andrew Glenn called it “a very bittersweet day” at Thursday morning’s bankruptcy court hearing, as he again reiterated the company’s disappointment that no full going concern bids emerged by the July 17 deadline. But in what he characterized as a “late breaking development”, Books-a-Million has indeed offered to take over the leases, inventory, furniture, and other related items on 30 stores, with an option on a further five stores. The offer would preserve anywhere from between 1000 and 1500 jobs, Glenn said, and he asked the court to proceed and later approve of the agreement, which Borders said […]
Finance
Borders Reported June Sales of $90 Million And $20.6 Million in Losses
In advance of Thursday morning’s court hearing on liquidation plans, Borders filed its operating report for the month of June. The company reported total revenue of $90.1 million (of which $86.6 million were sales) and an operating loss of $20.6 million, of which $19 million was due to reorganization costs. Also, current and former executives Scott Henry, Glen Tomaszewski, and Michele Cloutier each received $50,000 in bonuses. Monthly Report Borders also responded to 99 objections from creditors in a separate filing on Wednesday, calling those objections “irrelevant” since they don’t intend to carry on contracts with business partners and landlords […]
Borders Fallout Hits Home
As you would expect there is considerable coverage of Borders expected liquidation in cities across the country that face losing local bookstores as a result. The Detroit News estimated the four-county region will lose approximately 750 jobs as a result, between the booksellers’ Ann Arbor headquarters and their 18 stores in the area. While the prospects are considered good for many of Borders’ leases, reletting that many spaces in the troubled Detroit area is seen as posing “challenges” for landlords. The paper adds that “Borders’ closings are estimated to increase the collective nationwide vacancy rate of shopping centers that contained […]
Borders Will Submit Liquidation Plan to Court; Has Bid for 30 Stores; Kobo Objects to Any Sale of Their Stock or Services
Borders announced Monday afternoon that “in the absence of a formal proposal from a going concern bidder, it did not require an auction” as scheduled for Tuesday. The company will submit for court-approval on Thursday the liquidation plan from Hilco and Gordon Brothers. Borders ceo Mike Edwards said “we are saddened by this development” in a statement, but wants to make sure you know it’s not their fault. “We were all working hard towards a different outcome, but the headwinds we have been facing for quite some time, including the rapidly changing book industry, eReader revolution, and turbulent economy, have […]
Borders Auction Deadline Passes With No Additional Bids
The Sunday night deadline for bids in the auction for Borders passed with no offers besides the “stalking horse” liquidation bid, as the chain moved one step closer to going out of business entirely as a going concern. Jahm Najafi told Bloomberg News “we will not, reluctantly,” make a revised bid for the bookseller. The ever-upbeat Borders management continued to insist that interest persists, with ceo Mike Edwards indicating to the WSJ “that the retailer had received some inquiries over the weekend.” The paper added late Sunday that Books-a-Million was in discussions “on some kind of potential deal” though there […]
Follett Said to be Looking for Buyer
DealReporter (which we are reminded is not always on the money with their speculative stories) says in a piece carried on FT.com that privately-held Follett “is in the midst of a sale process,” according to two bankers. Their sources say that Credit Suisse has been retained to advised the company, in which the Follett family still has “significant ownership,” and “the company plans to hold management presentations at the end of July with potential suitors.” (DR is a little confused about Follett’s business, thinking that they are a publisher.) Follett’s site says they have over $2.7 billion in sales annually, […]