In the UK, trading in Woolworths’ shares was suspended this morning at the company’s request, as they are on the verge of bankruptcy and deep in negotiations for a rescue. They said in a statement that they are in talks to sell the BBC Woolworths’ 40 percent share of their 2entertain joint venture, which produces and distributes BBC shows on DVD. There are reports of agreement for a sale of that unit for 100 million pounds, but the Times says “the sale of the DVD business hinges on talks over the rest of the business.” The chain is still in […]
Finance
No New Books. What's Houghton Thinking?
It was less than a month ago that Houghton Mifflin Harcourt held an “open house” at their New York offices to celebrate the first combined list of the once separate trade lines, but now that welcome is firmly closed as the trade and reference division has “temporarily stopped acquiring manuscripts,” according to vp of communications Josef Blumenfeld. As first reported by PW and followed by the WSJ and NYT, Blumenfeld struggled for metaphors to explain the policy: “We have a temporary freeze on. We are working on what we already have.” Or rather, “there is a freeze-lite” he said. “There […]
Redstone's Debt Still Casts Shadow Over CBS
As Sumner Redstone continues to renegotiate $1.6 billion in debt–half of which is due on December 19–the financial world still expects that he will have to sell part of his public stock, even though he has insisted repeatedly he will not do so. The NYT says, “Here is what just about everyone, including those in Mr. Redstone’s inner circle, agrees on: if it gets bad enough, Mr. Redstone has indicated he would be willing to part with CBS, but not Viacom, according to three people briefed on the talks who, like the others involved, spoke on condition of anonymity.” Analyst […]
Books-A-Million Comp: Minus 9.9 Percent
Announcing third quarter results, Books-a-Million said that sales of $111 million were down 5.7 percent overall, and down 9.9 percent on a same-store sales basis. Their net loss was $2.2 million, compared to a loss of $555,000 a year ago. CEO Sandra Cochran says: “We faced dramatic macroeconomic headwinds, and as a result we experienced our weakest comparable store sales in many years. The negative trends were broadly felt across most categories although bargain books, gifts and teen provided positive results. Our entire team remains focused on adjusting to this difficult environment by controlling costs, managing inventory and preparing for […]
Woolworths on the Edge
In the UK, Woolworth’s–which has been headed for bankruptcy over the past two months–is now perched right on the edge. “Unless a deal is agreed in the next few days the entire Woolworths group looks poised to collapse into administration – putting 30,000 jobs at risk,” the Sunday Times writes. They add, “City sources say that Woolworths is fast running out of cash amid torrid trading conditions on the high street. It is thought that the company only has sufficient funds to last until about the middle of next month.” The banks hold the controlling cards in negotiations, according to […]
Bay Area on the Recession in Publishing
The SF Chronicle talked to local publishers and booksellers about they view, and are dealing with, the downturn. Owner of Book Passage in Corte Madera and San Francisco Elaine Petrocelli “recently began giving priority seating at author readings to customers who purchased the book.” She notes, “we have some things happening at Book Passage that make these economic times a little less frightening for us.” They will have hosted over 700 author events in 2008, as well as hundreds of in-store classes. “Petrocelli began a membership program, where supporters contribute varying amounts, from $50 to $2,500. Members are treated to […]