In other bookseller financial news, Barnes & Noble said they have amended their $1 billion line of credit to lower their financing costs and increase their borrowing capacity. CFO Joe Lombardi says in the release, “Amending our revolving credit facility enables us to lower our anticipated cost of capital and enhance our financial flexibility as we continue to transform the company and execute our strategic plan. We appreciate the strong level of support we received from our lenders.” They will write-off $6.4 million in deferred financing fees in the current fiscal year, which ended April 30, and say that in […]
Finance
Borders Tallies Their Record Losses, Before and After Bankruptcy
In two different statements filed with the SEC, Borders has further cataloged the many ways in which they excel at losing money. Let us count the ways: In the most recent operating month under bankruptcy, between February 27 and March 26, Borders preliminary calculation is that they lost $24.3 million on sales of $91.4 million and “other revenue” of $73.8 million. In the prior month, between January 30 — two weeks before filing for Chapter 11 — and February 26, the company lost $28.3 million, on sales of $127 million (and other revenue of $38.5 million). Yes, that’s a loss […]
Bookselling: Court Approves Davis-Kidd Deal; Monobookism; and More
Yesterday a Lexington bankruptcy court tentatively approved the results of the Joseph-Beth auction pending the entry of a sales order that’s expected Wednesday afternoon. The Lexington Herald-Leader reported the deal will close at the end of business Thursday, with the new owners taking over operations Friday morning. It puts three stores in the hands of Booksellers Enterprises for total consideration worth $3.98 million, with Joseph-Beth coo Mark Wilson serving as ceo of the new operating company. Liquidators Gordon Brothers bought the Virginia store for $672,000, and will sign the space over to Books-A-Million. Founder and former owner Neil van Uum’s […]
Borders Judge Explains Bonus Approval
As promised, bankruptcy judge Martin Glenn has filed a lengthy opinion explaining why the revised Borders executive bonus plan eventually won approval. In the final version, Judge Glenn says the “maximum total cost” of the two incentive plans is $3.9 million. At least 47 senior corporate employees have left the bookseller since the company file for bankruptcy, and “store closings and further attrition” have taken the overall workforce from approximately 16,000 full- and part-time employees down to roughly 11,000. Judge Glenn warns that successful reorganization won’t come easily: “Since the ultimate fate of many recent retailer debtors has been liquidation, meeting […]
Bookselling: The Future of Davis-Kidd; Waterstone’s Rumors; Store Closings; and More
The results of last week’s auction of remaining Joseph-Beth stores seemed to spell an uncertain future for its Davis-Kidd location in Memphis. Liquidation firm Gordon Brothers was the top bidder, and will start to wind down operations (pending court approval on Wednesday) unless a workaround can be found. That workaround, according to the Commercial Appeal, is if landlord Laurelwood Shopping Center and its president Tom Prewitt decides to help. “We tried to reach out to the mall (Laurelwood) ownership prior to the closing of the auction and work out a deal, but were rebuffed,” said Joseph-Beth ceo Mark Wilson. Bookseller […]
With Revised Bonus Plan Approved, Borders Seeks $50M More in Financing
If only Borders could bring the same energy and focus to their business plan that they’ve brought to incentivizing their leadership, they might have a chance for survival. After additional revisions and negotiations, a Federal bankruptcy court approved Borders’ executive bonus plan on Friday. The disbursement of up to $6.6 million in management bonuses for ten executives (40% of their base salary) and five senior executive bonuses (55% of base salary) is contingent on Borders reducing its annual rent by $10 million for each of 2011 and 2012, and the court approving a sale or reorganization plan by November 16. […]