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. […]
Finance
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. […]
Borders to Close TN Distribution Center; Will Meet with Publishers As A Group
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 […]
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