Agree Realty, hit particularly hard by Borders’ bankruptcy as a result of owning 14 properties where the retailer held long-term listings, has slashed the asking price for the company’s Ann Arbor headquarters from $18.349 million to $10 million. Earlier this year Borders indicated it was seeking cheaper and smaller space in the suburban Detroit area, as the 330,000 square-foot headquarters used to house as many as 1800 employees, but that number is down to 500 or less. AnnArbor.com The Tolkien Estate settled its lawsuit against author Stephen Hilliard, whose novel Mirkwood features JRR Tolkien as a character. The estate argued […]
Legal
Borders Tallies Their Record Losses, Before and After Bankruptcy
In two different statements filed with the SEC, Borders has further cataloged the many ways in which they excel at losing money. Let us count the ways: In the most recent operating month under bankruptcy, between February 27 and March 26, Borders preliminary calculation is that they lost $24.3 million on sales of $91.4 million and “other revenue” of $73.8 million. In the prior month, between January 30 — two weeks before filing for Chapter 11 — and February 26, the company lost $28.3 million, on sales of $127 million (and other revenue of $38.5 million). Yes, that’s a loss […]
Bookselling: Court Approves Davis-Kidd Deal; Monobookism; and More
Yesterday a Lexington bankruptcy court tentatively approved the results of the Joseph-Beth auction pending the entry of a sales order that’s expected Wednesday afternoon. The Lexington Herald-Leader reported the deal will close at the end of business Thursday, with the new owners taking over operations Friday morning. It puts three stores in the hands of Booksellers Enterprises for total consideration worth $3.98 million, with Joseph-Beth coo Mark Wilson serving as ceo of the new operating company. Liquidators Gordon Brothers bought the Virginia store for $672,000, and will sign the space over to Books-A-Million. Founder and former owner Neil van Uum’s […]
Bookselling: The Future of Davis-Kidd; Waterstone’s Rumors; Store Closings; and More
The results of last week’s auction of remaining Joseph-Beth stores seemed to spell an uncertain future for its Davis-Kidd location in Memphis. Liquidation firm Gordon Brothers was the top bidder, and will start to wind down operations (pending court approval on Wednesday) unless a workaround can be found. That workaround, according to the Commercial Appeal, is if landlord Laurelwood Shopping Center and its president Tom Prewitt decides to help. “We tried to reach out to the mall (Laurelwood) ownership prior to the closing of the auction and work out a deal, but were rebuffed,” said Joseph-Beth ceo Mark Wilson. Bookseller […]
With Revised Bonus Plan Approved, Borders Seeks $50M More in Financing
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. […]
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 […]