If only Borders could bring the same energy and focus to their business plan that they’ve brought to incentivizing their leadership, they might have a chance for survival. After additional revisions and negotiations, a Federal bankruptcy court approved Borders’ executive bonus plan on Friday. The disbursement of up to $6.6 million in management bonuses for ten executives (40% of their base salary) and five senior executive bonuses (55% of base salary) is contingent on Borders reducing its annual rent by $10 million for each of 2011 and 2012, and the court approving a sale or reorganization plan by November 16. […]
Legal
Lexington Mall Owner and Gordon Brothers Split Joseph-Beth Stores After Auction, But BAMM Will Take Over VA Location
In an auction that stretched late into the afternoon, the five remaining stores owned by Joseph-Beth found a variety of new owners, some of which were unexpected. Liquidation firm Gordon Brothers was the high bidder for the Memphis-based Davis-Kidd and the Fredericksburg, VA stores, but immediately transferred ownership of the VA store to Books-A-Million, which has a significant presence in the state. The outcome for stores in Cincinnati, Cleveland and Lexington, however, provided a late-game surprise, with the Mall on Lexington Green emerging as the high bidder. Until late last week Joseph-Beth president Neil van Uum was the only announced […]
Reversal of Fortune: Barnes & Noble Rises 14% on 3 Mil Shares, Breaks $10 A Share
Barnes & Noble shares took a wild ride in Tuesday trading. At one point (as we wrote yesterday) they were as low as $8.45–the lowest intraday mark since January 1996. But just after 1:00 PM shares took off, briefly breaking the $10 mark and closing at $9.96 a share. Up over 13.5% for the day, almost three million shares traded hands. The company’s stock is extremely sensitive to market movements now, with very high short interest, so the day’s movement could be a short squeeze, or it could represent anticipation of deal news. Yesterday’s BN news actually leaned in the […]
Briefs: US Trustee Objects to Borders Executive Bonuses; Indigo Faces Its ‘Starbucks Moment’; Kobo European Push; and More
Last week Tracy Hope Davis of the US Trustee’s Office filed an objection to Borders’ plan to pay executives up to $8.3 million in bonuses on the grounds that the bonus motion “is premature and should not be granted.” Borders had characterized the bonus plan as “providing necessary incentives” but the Trustee’s Office felt “there is no information that explains what extra services the insiders would perform beyond their ordinary job duties or a detailed description of the nexus between the supposed incentives and the payment trigger.” In addition, Davis said, the motion “provides no financial performance metrics nor are […]
Briefs: A Million eBook Sales for ‘Dragon Tattoo’; Legal Action Against Breakaway Angus & Robertson Franchises; and More
Knopf says that Stieg Larsson‘s The Girl With the Dragon Tattoo has sold over a million eBook copies, and adds to us that The Girl Who Kicked the Hornet’s Nest will reach that same milestone next week. (No word, however, on which e-vendor sold the millionth copy.) NYT Earlier this week a number of Barnes & Noble executives each disposed a small amount of stock at $9.18 per share, according to a number of SEC filings. Leading the group was Stephen Riggio, who decreased his total holdings by 3,136 shares to 96,924 shares. REDGroup administrators Ferrier Hodgson have taken their […]
A Look at Borders’ Liquidation Process as More Leases Are Rejected
Bloomberg takes a closer look at the Borders liquidation process and how it’s being handled by Hilco, who agreed to pay Borders 85.75 percent of the “cost value” of all merchandise, somewhere between $180.6 million and $204 million. But one of Hilco’s competitors in the liquidation auction, Great American Group director Scott Carpenter, bowed out because the firm “didn’t think you could achieve those values and make a profit.” Previously Borders told the bankruptcy court they expected liquidation sales to bring in about $175 million. Bloomberg In addition, federal bankruptcy court filings indicate the approval of nine Borders lease rejections in […]