In early December Barnes & Noble Education announced they would hire a financial advisor to “review strategic opportunities” — e.g. help try to sell the company — following yet another disappointing quarter, and claiming “a number of unsolicited inquiries” in rescuing the company from the management that has run it down. On Wednesday, with the stock trading at deep lows over the past few 10 days in the wake of broad campus closures, BNED adopted a poison pill (aka “shareholder rights plan”), to make sure no one actually buys the stock thinking they could gain control of the company. BNED said […]
Finance
LSC Communications Said to Prepare Bankruptcy Filing
As we have been warning, the largest book printer LSC Communications was perched on the verge of bankruptcy even before the economic crisis took hold. On March 4, LSC indicated they had been in “limited default” of their considerable loans since the end of 2019, with a forbearance agreement with their lenders good through May 14. With liquidity tightening drastically even for for solid companies, LSC’s refinancing prospects have become more limited in the past few weeks. Bloomberg reported earlier this week the company “is preparing to file for Chapter 11 bankruptcy after failed efforts to restructure its nearly $1 […]
McGraw-Hill Cengage Merger Further Delayed As UK Announces Deeper Review
The UK Competition and Markets Authority (CMA) announced March 24 that it would conduct an in-depth review of the planned merger between McGraw-Hill and Cengage. The review, referred to as a Phase 2 investigation, is not expected to conclude before September; meanwhile, competition agencies in the US, Australia, New Zealand, and Mexico are also still reviewing the deal. In a report on the update, McGraw-Hill says, “The completion of the merger is subject to a number of conditions, including, among others, the receipt of approval from governmental entities. No assurance can be given that the required regulatory approvals will be […]
Pearson Pauses Share Buyback, Citing “Prolonged Uncertainty”
Pearson “has decided it is prudent” to pause the rest of their planned £350 million share buyback, the company announced March 23. That repurchase program, under which they have already spent £167 million, was initiated in January as part of a plan to reinvest some of the expected proceeds from selling their remaining stake in Penguin Random House to Bertelsmann. (The sale is expected to close in the second quarter of 2020). Pearson estimated that the temporary closing of their Pearson VUE test centres will reduce operating profit by approximately £25 million to £35 million, and cancellations of state tests […]
Corporate: Scholastic Closes DCs in Cost Cutting, Bloomsbury Acquires Zed, and More
Scholastic reported results for the third quarter ending February 29, and announced cost and service cuts due to the pandemic: “We are taking aggressive actions to reduce operating expenses throughout the company, including the temporary closing of warehousing and distribution centers, and a freeze on hiring, travel and other discretionary spending not directly tied to short-term revenue, while working hard to ensure the safety and well-being of our staff worldwide,” ceo Richard Robinson said in the release. Overall sales for the quarter were $373 million, up $13 million compared to a year ago. Trade sales were even stronger — at […]
People, Etc.
Tim Holman will step down as the publisher of Orbit UK to focus on his role as svp and publisher of Orbit in the US, though he will continue to work from London. HBG ceo Michael Pietsch says, “I’m extremely happy that he has decided to devote 100% of his time and talent to even greater growth and creative publishing in the US market. Anna Jackson will move up to publisher of Orbit UK in April, reporting to Charlie King. Paola Crespo has been promoted to marketing manager at Orbit. At St. Martin’s publishing group: Rebecca Lang has been promoted to […]