New Borders ceo Ron Marshall placed phone calls yesterday to top publishers to reassure them of the company’s viability, the WSJ reports. Hachette Book Group ceo David Young says, “He said he is absolutely hell-bent on insuring that Borders is the first choice for the serious book buyer.” The WSJ adds: “Publishers and other suppliers said that Borders is currently paying its bills. But the retailer has been aggressively selling assets, slashing costs, laying off employees, and reducing debt to stave off the kind of financial crisis that could result in a Chapter 11 bankruptcy filing…. However successful Mr. Marshall […]
Finance
Kaplan Acquires Cleveland Clinic Press Assets
Kaplan Publishing has acquired “the majority of the assets” of the Cleveland Clinic Press, including 29 titles in the Cleveland Clinic Guides health reference line, and seven other books. The guides comprise “consumer health books written by Cleveland Clinic experts in various subject areas.” Started in 2005, the press’s staff was disbanded last spring. (Kaplan notes that it was Publishers Lunch report on trouble at the press “that led to this agreement coming into place.”) Kaplan president and publisher Maureen McMahon says in the announcement, “Last spring we began looking to expand our trade publishing program and this move allows […]
Borders and Burkle Boost Barnes & Noble
Following “ongoing challenges” at Borders and the big stake taken in Barnes & Noble stock by activist investor Ron Burkle, genius Goldman Sachs Matthew Fassler has revised his rating on BN. He upgraded the stock to neutral from sell. At midday, Barnes & Noble (BKS) was up more than 10 percent on the stock market, while Borders (BGP) was up more than 13 percent on news of new management.AP
Hachette Buys Control of Salter's Company
In the first acquisition of the year, Hachette Livre has announced the purchase of a controlling interest in Nina Salter’s Editions des Deux Terres, founded in 2002. The line publishes a dozen books a year, focused on literature translated into French (by the likes of Kiran Desai, Julia Glass and Kazuo Ishiguro) and bestselling thrillers from Patricia Cornwell, Jeffery Deaver, Ruth Rendell and others. Hachette call is “an opportunity to strengthen its position in the crucial segment of quality fiction and thrillers.”
Jones Replaced at Borders
Would-be retail turnaround specialist George Jones is being replaced immediately as ceo of Borders Group after two-and-a-half difficult years of failing to bring to the retailer to profitability. Taking over is Ron Marshall, most recently principal of Wildridge Capital Management, a private equity company he founded. Previously, Marshall was ceo for eight years of food distributor Nash Finch Company and prior to that he was evp and cfo at Pathmark. Earlier in his career he worked at Crown Books and BN College. Board chairman Larry Pollock says in the announcement, “it is imperative that the company more aggressively attack these […]
Burkle Buys Big Barnes & Noble Stake
Investor Ron Burkle filed papers with the SEC on Friday disclosing that his companies have purchased an 8.3 percent stake in Barnes & Noble since November 24. Purchasing over 4 million shares, he believes “such shares were undervalued by the market at the time they were acquired.” The filing declares the purchase is “for investment purposes, however, the reporting persons intend to closely monitor the company’s performance and may modify their plans in the future.” Burkle’s investment company Yucaipa says on their web site that they “work with management to strategically reposition businesses and implement operational improvements, resulting in value […]