As Borders campaigns privately to persuade creditors and vendors to support its reorganization plans and resume normal trade terms, the NYT adds its assessment to yesterday’s WSJ report, which does not show a lot of movement. Those publishers willing to speak remain unmoved and “said they were no more likely to resume normal trade terms with Borders.” One unnamed publisher said, “We are not impressed. None of it gave us any reason to think they can get themselves out of this. I don’t think it’s changed anybody’s mind.” But Borders ceo Mike Edwards retains his unshakable belief that everything is […]
Finance
Borders Previews The Plan, and Will Exit Ann Arbor
Borders is finally ready to present their business plan to creditors this week, the WSJ reports, though the paper has few details on what Borders will propose. The lead trumpets “major cost reductions” that include over $30 million in rent reductions. Of course the bookseller has also proposed paying out $8.3 million in executive bonuses, and the last time they reported earnings in December 2010, they lost almost $75 million in the third quarter alone. The company will leave their Ann Arbor home–which has been up for sale since last fall, portions of which Borders had sub-leased out before filing […]
Still in the REDGroup: More Borders Stores to Close; Whitcoulls Airport Stores Sold
The REDGroup Retail bankruptcy march continues, as administrators Ferrier Hodgson announced today that they will close 16 more Borders stores in Australia over the next 8 weeks, with 510 staffers expected to be laid off. The closings will leave just 9 Borders stores left on the continent. In addition, Ferrier Hodgson sold 10 Whitcoulls airport stores to Australian-based travel retail specialist LS Travel Retail Pacific for an undisclosed sum. The shops at four New Zealand airports will be rebranded under the Relay name over the next few weeks. Bookseller+Publisher National Business Review
More Warnings and Speculation On HMV and Waterstone’s
Struggling UK chain HMV reduced their profit expectations for the third time so far this year, telling investors they expect full-year profits of about 30 million pounds, reduced from their estimate of 38 million pounds at the beginning of March. HMV shares have declined more than 20 percent in today’s trading, down to a mere 12 pence per share. The good news is that their lenders–whose borrowing convenants they expect to violate–have given the chain an extra two months, until July 2, to “test” those convenants. That gives the company just a little breathing room to sell some assets in an attempt […]
Briefs: Controversy over The Pale King On-Sale Date; Details on Stephenie Meyer’s Next Novel; and More
Little, Brown made much hay of publishing David Foster Wallace‘s unfinished novel The Pale King on April 15, since that day is tax day (except this year it’s not, thanks to a tardy Congress) and the book features the day-to-day thoughts and deeds of IRS agents. But the book’s actual on-sale date was March 22, which is how Amazon, BN.com and other online retailers started shipping copies to customers – even though most independent bookstores weren’t selling the book yet or hadn’t even received copies, believing or having been told the book was embargoed. “I don’t really understand the confusion,” […]
A Look at Borders’ Liquidation Process as More Leases Are Rejected
Bloomberg takes a closer look at the Borders liquidation process and how it’s being handled by Hilco, who agreed to pay Borders 85.75 percent of the “cost value” of all merchandise, somewhere between $180.6 million and $204 million. But one of Hilco’s competitors in the liquidation auction, Great American Group director Scott Carpenter, bowed out because the firm “didn’t think you could achieve those values and make a profit.” Previously Borders told the bankruptcy court they expected liquidation sales to bring in about $175 million. Bloomberg In addition, federal bankruptcy court filings indicate the approval of nine Borders lease rejections in […]