Struggling UK chain HMV reduced their profit expectations for the third time so far this year, telling investors they expect full-year profits of about 30 million pounds, reduced from their estimate of 38 million pounds at the beginning of March. HMV shares have declined more than 20 percent in today’s trading, down to a mere 12 pence per share. The good news is that their lenders–whose borrowing convenants they expect to violate–have given the chain an extra two months, until July 2, to “test” those convenants. That gives the company just a little breathing room to sell some assets in an attempt […]
International News
Borders Lease Costs, Remaining Australian Stores for Sale, and Indie Closings
In reporting their recent quarterly earnings, Agree Realty took a $7.7 million impairment charge related to four leases for Borders stores that are currently being liquidated and another two stores that were closed earlier in the year. They retain exposure on additional store leases, as well as the lease on the Borders headquarters building in Ann Arbor. The company reduced their dividend by 22 percent because of Borders, which they say “should provide the company with sufficient liquidity and flexibility to accommodate any further development in the bankruptcy.”Crains Detroit Last Friday the Borders bankruptcy judge declined to hear arguments on […]
Announcements: Russia at BEA, Harper Offers “Book Perks”
BEA will host Russia as guest of honor in their Global Market Forum program in 2012. Russia holds a similar role at this year’s London Book Fair. BEA organizers say that “Russia plans to have 50 Russian writers plus another 50 editors and publishing executives coming to New York for these events, which will include both a cultural and a professional component.” HarperCollins has officially launched a groupon-esque site, BookPerk.com. They carry–and push out–a series of offers for signed and deluxe editions of books and other “extras” like movie tie-in tickets along with contests (like a “perk of the day” […]
In the UK In 2010, Book Sales and New Book Production Decline
New book production in the UK declined slightly in 2010 according to preliminary figures from Nielsen Book, remaining robust at 151,969 titles. That is a 3.2 decline from 2009’s final count of 157,039 titles, and still the second-highest total recorded. (Nielsen notes that in 2009, the final count was considerably higher than the preliminary tally.) Overall sales volume as measured by Nielsen BookScan UK’s total consumer market tabulation puts UK book sales for 2010 at 229.3 million units (down 2.7 percent) and 1.72 billion pounds in consumer revenues (down 1.7 percent). Those figures are based on an unusual 53-week sales […]
Lots of Answers–Or Questions–From Australia
Australian media abounds with speculation on what brought down the REDgroup bookselling empire–which has debts of over $130 million (AU). The company was previously thought to comprise over a quarter of Australia’s $1.5 billion book business. (A Smart Company story in late 2009 said that annual sales for the privately-owned chain had risen to $685 million.) From the trade come a variety of answers: “REDgroup chairman Steven Cain blamed competition from foreign retailers like Amazon, who avoid charging Australian GST and duty taxes,” in one report. CEO of the largest competitor standing Dymocks, Don Grover tells the SMH, “The real […]
Zondervan CEO Girkins to Exit, New Non-Fiction Imprint at Orion; and More
Zondervan said that president and CEO, Maureen “Moe” Girkins, will leave her position as of March 11, 2011. Acting general manager of Zonderan’s The City, an integrated software platform for church communities Scott Macdonald will serve as interim president during the “transition period” as a search for a new CEO is conducted. Elizabeth Eulberg is leaving Little, Brown, where she has been director of global publicity for Stephanie Meyer, to write full-time. At Fordham University Press, Wil Cerbone has been promoted to editorial associate and assistant to the director, while Tom Lay is now assistant editor. Stephanie Swane has joined […]