In one of the filings related to their bankruptcy today, Borders provided a snapshot report on full-year sales, even though they have not formally reported those results yet. Sales for the fiscal year ending January 29, 2011 were “approximately $2.3 billion”–from which we deduce sales for the year fell roughly 14.5 percent compared a year ago, when they recorded sales of just under $2.7 billion. An estimate of fourth quarter results based on the three other quarters already disclosed shows that a bad situation got worse during the best sales time of the year. Fourth quarter sales were roughly $761 […]
Finance
Borders Files for Bankruptcy; Owes Top Publishers $230 Million, and Will Close About 200 Stores
Borders formally filed for Chapter 11 bankruptcy protection in a Manhattan Federal Court, listing total debt of $1.29 billion and supposed assets of $1.275 billion. Among the top 30 unsecured creditors listed in the filing, book publishers and distributed are owed roughly $230 million (see below for the full list). Borders says in their announcement that it “has received commitments for $505 million in Debtor-in-Possession (DIP) financing led by GE Capital, Restructuring Finance. Restructuring Finance. This financing should enable Borders to meet its obligations going forward so that our stores continue to be competitive for customers in terms of goods, […]
HB Fenn Bankruptcy Filing Lists $25M in Liabilities; Macmillan To Ship Direct As of April 1
Canadian distributor HB Fenn confirmed its February 3 bankruptcy announcement in a statement of affairs filed with the Office of the Superintendent of Bankruptcy Canada. In it Fenn lists $25 million (CA) in liabilities against $14.8 million in assets. Fenn owes $21.8 million to unsecured creditors, with Macmillan the largest by far (owed $10 million, with an additional $600,000 owed to its UK arm.) Other notable unsecured creditors, according to Quill & Quire, include four H.B. Fenn-affiliated companies comprising Fenn Publishing, Fenn Technologies, and two numbered corporations bearing H.B. Fenn’s Bolton address who together are owed $4.1 million, HarperCollins ($3.3 million, […]
McEvoy Adds to Group with Princeton Architectural Press Purchase
Founder and owner of New York-based Princeton Architectural Press Kevin Lippert has sold the company to Nion McEvoy’s The McEvoy Group as of January 1, announced today. Lippert is staying on as president and publisher. Chronicle has been the publisher’s distributor since 1995, and will operate the press “as a stand-alone operation.” McEvoy Group president Jack Jensen says “we look forward to helping Princeton consolidate its position as one of the preeminent publishers of books on architecture and design in the world, and to expand its offerings in both academic and electronic publishing. Lippert had repurchased shares in the publisher […]
When Will Borders File For Bankruptcy? As Early As Today, Or Later This Week
The WSJ reported Friday afternoon that Borders “could file for Chapter 11 bankruptcy protection as soon as Monday or Tuesday,” but also cautioned “the filing could be delayed a few days.” Whenever the bankruptcy filing takes place, it will trigger the imminent liquidation and closure on a significant portion of their store base–now predicted to cover 200 of the company’s superstores (with an option to close 50 more) and all of its smaller mall-based outlets, among other restructuring efforts. If it comes before the end of this month, vendors who received checks at the end of November may have to […]
Sales Grow But Indigo Profits Still Drop in Third Quarter
Third-quarter performance at Canada’s retailing giant Indigo looks reminiscent of Barnes & Noble’s trajectory, with ebooks, ereaders and online sales helping to lift sales while also weighing on expenses. Indigo’s revenues rose 14 percent to $387.6 million (CA), beating projections, but net profit of $30.2 million (or C$1.19 a share) was $4 million lower than a year ago, which was less than analysts expected. Superstore comps increased 2.6 per cent while smaller-store comps dropped 0.8 percent from last year’s levels, and the company’s online division was up 6.5 percent from a year ago. As with the previous quarter, digital investments […]