Direct Brands’ Canadian unit DB Media has filed for bankruptcy and the administrator told employees yesterday that the unit is ceasing operations immediately and all jobs are terminated, putting about 100 people out of work. The Canadian book club operated as Doubleday Canada, and the other major unit used the Columbia House name. In an e-mail to the Toronto Sun, Direct Brands ceo Deborah Fine referred to it as a “strategic decision to close the Canadian operation.” To avoid any confusion, the Random House Canada underscored in a brief statement that their line “is very much in active business and […]
Finance
After Another Terrible Quarter, Borders Warns of New Liquidity Threat
Borders reported third-quarter results after the close of the market on Thursday, and their report card is as dreadful as many feared. They are losing even more money than before and sales continue to fall at alarming rates. As part of the report, they also warn of another looming liquidity threat. The company is forced again to look for “replacement financing,” following the continuing losses and a low third-party “estimated liquidation value of our inventory” (which is their primary asset, and affects how much they can borrow.) If they can’t find a solution, they warn they could be in violation […]
Market Mulls Barnes & Noble & Borders
The market and media are both continuing to speculate on Bill Ackman’s attention-getting theoretical offer finance a purchase of Barnes & Noble and merger with Borders. Barnes & Noble stock jumped sharply in early trading yesterday and gave back some of the gains to finish at $14.69 a share. But they have rallied again today, almost touching the $16 price floated by Ackman about an hour ago. Borders, which is almost a penny stock, rose even more on a percentage basis yesterday on huge volume, but is down for the day today. As we suggested yesterday, the most likely outcome […]
Ackman Is Back, Still Trying to Put Together Borders and Barnes & Noble
Barnes & Noble stock has sunk so low again that investor Bill Ackman of Pershing Square–who lost a considerable sum on his company’s 37 percent stake in Borders–has returned to the scene with a provocative offer. Ackman still thinks there is financial reason to put the two big bookselling chains together, likely as a salvage route for Borders more than anything, and indicates he will finance a $16 a share takeover offer for the smaller, weaker Borders to buyout BN. The theoretical offer was declared in an SEC filing saying his companies “would be prepared to finance, on mutually acceptable […]
Updates of All Kinds
1. Despite the skepticism expressed yesterday by co-author of the self-published success THE INVESTMENT ANSWER Dan Goldie about “whether there could be advantages” to having an established publisher take over, people familiar with the negotiations tell us that agent Laurie Liss at Sterling Lord Literistic is well along the path towards a sale, reportedly with multiple seven-figure bids offered and a deal announcement expected shortly. 2. If you read at least some mild skepticism in Barnes & Noble‘s report yesterday on the status of their investigation of strategic options for the company, then you will find credence in this report […]
Skyhorse Buys Allworth
Skyhorse Publishing announced on Friday that they have acquired New York-based Allworth Press, which publishes business and self-help books for artists, photographers, graphic designers, and interior designers as well as for filmmakers, performing artists, and authors. Founder Tad Crawford will continue as publisher of Allworth, which has a backlist of over 300 books and publishes 18 to 20 new titles a year. They say in the announcement that Allworth had sales of $1.4 million in 2009. Skyhorse president Tony Lyons says in the release, “I have admired Allworth Press for two decades. Skyhorse is always looking for quality lists and […]