Weeks of speculation about the future of Waterstone’s after parent company HMV let investors know that it might violate banking covenants – not to mention the possibility that founder Tim Waterstone and minority shareholder Alexander Mamut are interested in buying the chain — has led to today’s announcement that yes, Waterstone’s is on the block, its fate potentially decided in the next four weeks. “In response to press speculation, the board confirms it is exploring strategic options in respect of Waterstone’s and HMV Canada,” HMV said in a statement. “The board also confirms that no discussions are taking place with respect to […]
Finance
Briefs: Dorchester Woes Continue; The Brand of Mary Higgins Clark; Penguin Piracy Suit; And More
Dorchester Publishing continues to do its best zombie impression, as a number of authors have learned the ailing company continues to sell digital copies of their work even after they no longer hold the rights, and despite repeated assurances they would stop this practice. Horror writer Brian Keene detailed the situation on his blog, saying that he found unauthorized e-copies of his books under the Dorchester banner selling through various digital outlets. “In the most recent case (iBooks), Dorchester blamed their vendor, Libre Digital, but provided no documentation verifying this. An employee at Apple cast doubt on this explanation. In the […]
Scholastic Losses Widen in Third Quarter, Though Trade Publishing Is A Bright Spot
Sales at Scholastic dropped 1.1 percent in their third quarter, at $393.7 million compared to $398.8 million a year ago. They also reported a net loss from continuing operations of $25.1 million, significantly more in the red as compared to the $5.6 million in net losses the previous year. They attribute the drop in earnings to lower sales of higher margin educational technology relative to a year ago, thanks to significant benefit from the federal stimulus program, as well as increased investment in digital initiatives. Trade publishing sales of $43.5 million rose 21 percent compared to a year ago due […]
B&N’s Attempt To Sell Itself Appears To Have No Takers
Barnes & Noble’s ongoing “exploration of strategic alternatives” — which we all know by now is code for being for sale – appears to be nearing an end without a buyer. Five unnamed sources with apparent knowledge of the bidding process told Bloomberg yesterday that “interest from at least seven potential buyers waned after the first round of bidding,” and “private-equity firms and strategic bidders have backed away from the auction” after getting cold feet about BN’s digital sales prospects, at least in relation to its larger, market cap-rich competitors Amazon, Apple and Google. The auction will continue “for […]
Earnings, Comp Sales Slide for BAMM
Fourth quarter sales at Books-A-Million fell 6.7 percent on a same-store basis and 2.6 percent overall to $153.1 million percent, but net income of dropping by nearly half to $6.8 million, compared to $11.9 million a year ago. For the full year sales of $495 million were down 2.7 percent, declining 4.9 percent on a same-store basis, and net income dropping to $8.9 million. The board authorized a quarterly cash dividend of $0.05 per share. Chief Executive and President Clyde Anderson said in a statement that the declining fiscal year results “illustrate a dynamic and rapidly changing retail environment for […]
Finally, Judge Chin Decides: The Google Book Settlement Is Rejected
Nearly a year after Judge Denny Chin was confirmed to the 2nd Circuit Appeals Court, and more than 13 months after his hearing on the Google Book Settlement, he finally ruled. the settlement “is not fair, adequate or reasonable” and is rejected. While Judge Chin outlines a number of concerns, he notes one fundamental change that could make it acceptable: change it from opt-out to opt-in, and Chin says, “I urge the parties to consider revising the ASA accordingly.” Of course that would literally change everything, not only removing the settlement’s attempt to provide a legal and business-driven solution to identifying […]