Borders announced on Thursday night at long last what they have basically been saying for a month: they have a heavily-contingent financing “commitment” from GE Capital, Restructuring Finance for a new $550 million line of credit. Among the many complex “conditions” to obtain the new line is that $125 million in vendor payables must be converted into debt (or, alternately, that “external sources” provide an equivalent amount of additional financing.) Additionally, CEO Mike Edwards now admits (or threatens, depending upon how you view it) that “it is prudent as well for Borders to explore alternative avenues, including the possibility of […]
Finance
With Sale of Day by Day Kiosks to Calendar Club, Borders Raises Some Cash
It remains to be seen whether publishers will accept Borders’ proposed plans for renegotiating credit arrangements by the reported February 1 deadline, but the retailer will get at least some cash from the sale of its seasonal calendar kiosk service, Day By Day Calendars, to competitor Calendar Club LLC. The purchase, under negotiation for some time, closed last Wednesday and was announced to Borders staff on Friday by CEO Mike Edwards. In a telephone interview, Calendar Club CEO Marc Winkelman said the deal has been in the works since the fall, when Borders approached Calendar Club along with other prospective […]
Barnes & Noble Lays Off Staff, Including Many Well-Known Veterans
Following what was advertised as their “best [holiday] comparable store sales performance in more than a decade,” Barnes & Noble laid off an unspecified number of employees today, rumored to be roughly 40 people or more, apparently including a number of veterans well-known to publishers. Spokesperson Mary Ellen Keating said by e-mail, “We made a small number of organizational changes this week that are designed to better align our resources with our business. Barnes & Noble is a growing company with both our revenues and new hires growing faster than they have in years.” She declined to discuss the number […]
Still More Cuts As Borders Lays Off Another 45 People; Laredo Hopes to Land BAM
This time Borders has eliminated another 40 jobs from their Ann Arbor headquarters, and another 5 jobs at their distribution centers, announced on Monday. Spokesperson Mary Davis told the Detroit Free Press, “The realignment at the store support center encompasses nearly all business areas, including IT, human resources, finance and merchandising. This decision is a result of Borders’ focus on reducing costs and readjusting its business model to improve profitability and cash flow.” In better bookstore news, lobbying from Laredo, TX to entice a major bookstore to the city following the closure of their last new bookstore of scal, a B. […]
On Borders: We Really Might Not Know Until Groundhog Day
In Friday’s Lunch we compared Borders’ presentation to publishers on Thursday as Groundhog Day–a repetition of the same basic plan they had been talking about since late December–and it also appears that there may not be a final decision on the bookseller’s fate until Groundhog Day itself, the rough deadline set by Borders. The WSJ adds the name of the law firm that is representing Borders in the restructuring talks (Kasowitz, Benson, Torres & Friedman), and provides an estimated amount for the new credit line under negotiation with GE and others: “$500 million or more.” That is considerably less than […]
Borders Lays Off Another 15 Staffers
As publishers met with Borders executives yesterday afternoon to discuss restructuring options and credit negotiation agreements, the company announced today that another 15 staffers have been let go. Spokesperson Mary Davis issued a statement that, “As part of its brand transformation process, which includes enhanced cost efficiencies measures, Borders Group today eliminated 15 positions within its field organization. The number includes 9 regional merchandising manager, four event marketing manager and two district manager positions. “The affected employees are being offered, in some cases, an alternative position, while the rest of the employees will receive severance in accordance with company policy. […]