After recently announced cuts of another 100 jobs at their Tennessee distribution center, Borders Group has cut staff again, returning to the rolls at their Ann Arbor headquarters. Spokesperson Mary Davis confirmed their were “job eliminations” to the Ann Arbor newspaper but declined to indicate a number. There have been approximately 650 people working out of the Ann Arbor offices, after 88 corporate workers were laid off in January. Davis said: “As we aggressively work to restore the financial health of the company, we have reorganized core areas of our business to ensure that we have the necessary resources in […]
Finance
More Concerns about Australia/New Zealand Bookselling Giant; McNally Jackson Still Waiting for Espresso to Brew
We noted in late July that RedGroup–the dominant bookseller in Australia and New Zealand under the Whitcoulls, Angus & Robertson and Borders ANZ operations–was talking to its lenders about getting a waiver from an expected breach of their borrowing covenants. (Even so, they were reportedly projecting ebitda of approximately $25 million AU for their fiscal year ending in late August.) A new story in Crikey cites industry sources whom claim the group “has been forced to jack up prices, increase returns and extend trading terms with its suppliers.” One anonymous publisher says the chains have asked for 120 days to […]
Dorchester: Digital, or Desperate?
Dorchester Publishing has switched to subsistence mode, though they have tried to sprinkle some digital fairy dust over the move. The mass market publisher has struggled for some time, now. At the beginning of the year they sold both frontlist and backlist titles from many of their top authors to Avon–an imprint of their distributor, HarperCollins. Earlier this summer, the Romance Writers of America reportedly cancelled Dorchester’s participation in their annual conference because the company was “past due in fulfilling contractual obligations to some of their authors.” And company president John Prebich confirmed to the media last Friday that their […]
Indiana Publisher Investigated for Not Printing Customers’ Books
The Indiana Attorney General’s office is investigating multiple complaints from authors who worked with New Century Publishing and say they paid for books that they never received. So for negotiations with owner David William Caswell have “failed to lead to restitution to the authors.” The AG’s office has successfully sued Caswell twice in the past, though the Indianapolis Star says he has paid almost none of the money owed under two court-approved settlements.Indy Star
Today’s Barnes News: Riggio’s eVision, Burkle’s Friends, Cramer, and Private Equity
After finishing the day up almost 20 percent on volume of close to 6 million shares, Barnes & Noble stock slid slightly in early trading this morning while markets consider the board’s news (and as the overall market itself declined). For some people, when James Cramer advises Mad Money viewers to sell Barnes & Noble stock (“let’s take some profits in that one”–? what profits?), that’s a buy sign. The WSJ offers a closer look at chairman Len Riggio’s electronic ambitions and the extent to which he has re-engaged in the business overall this year. “By putting together an investment […]
The Barnes & Noble Update
Following yesterday’s after-marker news that the board of Barnes & Noble will explore “strategic alternatives,” the company’s shares are experiencing the anticipated heavy trading volume this morning, with volume of nearly 3 million shares in the first hour alone. At that point, the stock was up approximately 20 percent over yesterday’s close. After the board boosted the stock’s prospects, Goldman Sachs thoughtfully upgraded their rating from sell to neutral, and changed their 12-month price target from $12 a share to $15 a share. Analyst Matt Fassler still hates the company and they “do not see compelling value in the business,” […]