Borders will close what remains of their distribution center in LaVergne, TN by mid-July, providing notice to approximately 300 employees that they will be let go. The company closed a returns center at the same location last year. They say it is part of their “long-term plan to enhance the efficiency of its distribution network and reduce operating expenses.” The company added in a statement, “After an extensive review of its supply chain, the company found it has excess capacity in its distribution network and requires only two distribution centers to process and ship inventory to stores.” They also have […]
Finance
Market Pounces On Borders’ Rumor As Talks Continue
The reports on Borders are mounting by the day, though the news is primarily whispers about potential advisors fanning the flames of the day traders and penny stock specialists driving the booksellers’ stock. Case in point: multiple outlets have been suggesting all week that the company is talking to Jefferies & Co. about the possibility advising on restructuring options. (Borders has used Jefferies for general investment banking needs in the past.) Yesterday the Wall Street Journal said as much, indicating Jefferies “are among those in talks to represent the struggling book retailer and advise it on reworking its debt load.” […]
Deals, On (ebrary) and Off (Busted Flush)
Separately, long-term epublishing survivor from the first internet/ebook bubble ebrary has found a suitor after 11 years, agreeing to an acquisition by ProQuest. ebrary founders Christopher Warnock and Kevin Sayar will stay on in the company’s Palo Alto offices.Release Tyrus Books announced on their website yesterday that their tentative agreement to acquire Busted Flush Press has been terminated following Thompson’s unexpected death last year. They write “the continued process of settling Mr. Thompson’s estate necessitated substantial reconsideration and subsequent termination of the proposed deal.” Thompson’s widow McKenna Jordan “will assume full legal and financial control of Busted Flush Press.” Post
The Latest On Borders, As More Executives Leave
Per our report yesterday that additional executives were leaving Borders beyond the two names disclosed in Monday’s SEC filing, the WSJ reports that the recent high-level job reductions also include svp for business development Larry Norton, svp for marketing Bill Dandy, and vp of real estate Tony Grant. Separately, anonymous Borders employees say via an online message board that three of five regional vice presidents were also let go. They report that in a conference call among general managers, employees were told the store network has been rezoned into just two regions. The NYT adds that publishers indicate Borders executives […]
Borders Counsel Carney and CIO Laverty Both Resign; Ingram Says They Will Keep Shipping
Just as Borders is preparing for complex negotiations with vendors and lenders, they will be doing so without the assistance of EVP, general counsel Thomas Carney, who has served as the bookseller’s top attorney since 1994. He resigned on Sunday, noted by Borders in a terse SEC filing after the close of the market yesterday. SVP, chief information officer Scott Laverty resigned as well, on Monday. Laverty joined the company in May 2009, charged with overseeing the “overall vision, strategic direction and tactical execution of all information technology systems and solutions.” Spokesperson passes along the company’s statement: “As previously reported, we are […]
How Borders Negotiations’ Might Go
Last Friday Borders’ stock fell over 22 percent on the news of delayed payments to major vendors, taking share below the one dollar minimum required on a long-term basis for listing on the New York Stock Exchange. Borders spokesperson Mary Davis confirms our report from Thursday based on discussions with some of those vendors that the Borders executive team will be in New York this week to negotiate with the publishers whom they owe money. (While the company is in continuing discussions over replacement financing, Davis says this week’s New York meetings are focused on publishers only.) NBN head Jed […]