Russian billionaire Alexander Mamut, who has increased his stake in Waterstone’s to more than 6 percent over the past few weeks, is now reportedly in talks with the company to buy the chain outright in a joint bid with founder Tim Waterstone. Mamut has hired Credit Suisse to assist in the potential bid. ThisIsMoney.co.uk Foyles will move its flagship space from its current home on 113-119 Charing Cross Road, where it has been since 1906, to a new store down the street sometime in 2013. The nearly 75,000 square foot space, almost double the present location, was bought by Foyle […]
Finance
Four Publishers On Borders Creditors Committee; Real Estate Manager Expects Additional Stores to be Closed
The official committee of unsecured Borders creditors was formed yesterday, comprising representatives from Penguin, HarperCollins, Random House and Perseus, along with Sony Music, GGP, and Simon Property Group. Separately, Chain Store Age has an interesting interview with Andy Graiser, co-president of DJM Realty, which is marketing the leases on the stores that Borders is liquidating. He says they have been “getting interest from all categories of retailers,” adding “Borders competitors aren’t in the mix yet, but I’m sure they’ll be there.” Graiser believes that Borders will indeed exercise its option to close some additional stores beyond the 200 that are […]
At Barnes & Noble, Sales Rise, Profits Fall, Dividend Is Suspended and Shares Are Punished
Barnes & Noble’s third quarter results, reported this morning, show the trickiness of navigating this transitional retailing (and etailing) climate. Following their best holiday period in years, sales rose 7 percent and profits were within the company’s own guidance. Both measures were below analysts’ expectations, though, with profits down from a year ago, and the company is suspending its quarterly dividend of twenty-five cents per share. The dividend reduction was expected long ago, since the company is investing in its digital strategy and has financing the dividend through borrowings rather than earnings. But the combination of lower earnings and no […]
Court Approves Borders’ Store Closure Plan In Time for President’s Day Sales; BAMM Eyes Some Locations?
After a brief postponement from Wednesday, the bankruptcy court approved Borders’ store reduction program and the chain has finalized agreements with liquidators. Going-out-of-business sales will begin on Saturday, February 19, which allows Borders to take advantage of President’s Day Weekend, and the company expects the 200 previously identified stores to close by the end of April. Hilco Merchant Resources, SB Capital Group, Tiger Capital Group and Gordon Brothers Group won the bidding to handle the liquidation sales, striking a deal that Bloomberg reports would guarantee almost 86 percent of the cost value of merchandise at the stores. Merchandise that Borders […]
Who Else Benefits – Or Suffers – From Borders’ Bankruptcy?
In addition to the bankruptcy’s effect on book sales and publishers’ respective bottom lines, Borders’ Chapter 11 filing will have a domino effect on a number of related players, among them: LandlordsPublicly-traded Michigan-based Agree Realty was often cited as being in the most precarious position, because Borders stores made up approximately 20% of their total real estate portfolio (and was as high as 27%). Yesterday Agree released a statement indicating that 5 of the 14 Borders properties it owns (which includes company headquarters in Ann Arbor, up for sale, and two buildings not currently occupied by Borders) are slated for […]
Australia/New Zealand’s Dominant Bookstore Group Also Files for Bankruptcy
Bankruptcy is spreading through the world English-publishing world as Australia and New Zealand’s leading bookselling organization RedGroup Retail has been placed into voluntary administration by private equity owners PEP. The group comprises Angus & Robertson in Australia (with over 160 stores), Whitcoulls in New Zealand (with 65 stores), Borders in Australia (26 stores), New Zealand and Singapore, and the Calendar Club in both Australia and New Zealand. The combined entities employ approximately 2,500 people. The Age reported today that REDgroup “was forced to call in administrators to the businesses this afternoon following a board meeting.” All stores are slated to […]