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 […]
Legal
BAMM Enters New Credit Agreement As Executives Add Stock
Books-A-Million stock hit a 52-week low last week on the heels of disappointing fourth quarter and annual earnings, following a pattern similar to Barnes & Noble’s though less dramatic. Shares fell more than 8 percent on Friday, closing at $4.10 a share, and were down 20 percent in the three days after their earnings report. A number of company executives added shares at the bargain price of a penny per share according to a series of SEC filings, by exercising options. CEO Clyde Anderson led the group, adding 116,840 shares, boosting his total holdings to more than 1.8 million shares. The […]
Borders Asks Court to Authorize $8.3 Million in Executive Bonus Payments
In papers filed last week, Borders asked a federal bankruptcy court to authorize as much as $8.3 million in bonus payments to company executives – including up to $1.7 million to CEO Michael Edwards. Seventeen executives are covered by the largest bonus program, which could add between $4.7m and $7.1m, while a second $1.2 million bonus program covers 25 “director-level” managers that court papers say are “critical to the debtors’ reorganization and to ongoing business.” The company said that 70% of its top executives have been with Borders for 18 months or less, and that bonuses were not paid at […]
Briefs: Dorchester Woes Continue; The Brand of Mary Higgins Clark; Penguin Piracy Suit; And More
Dorchester Publishing continues to do its best zombie impression, as a number of authors have learned the ailing company continues to sell digital copies of their work even after they no longer hold the rights, and despite repeated assurances they would stop this practice. Horror writer Brian Keene detailed the situation on his blog, saying that he found unauthorized e-copies of his books under the Dorchester banner selling through various digital outlets. “In the most recent case (iBooks), Dorchester blamed their vendor, Libre Digital, but provided no documentation verifying this. An employee at Apple cast doubt on this explanation. In the […]
Joseph-Beth Store in Virginia Stays Open With Auction Bid Deadline Set for April 19
Just before a federal bankruptcy court judge was set to consider Joseph-Beth‘s motion to close its Fredericksburg, VA store, attorneys for the company withdrew the request after receiving “formal and informal objections” to the plan. Instead, Joseph-Beth decided to include the store in its ongoing sale process with the other four locations still open in Memphis, Cincinnati, Cleveland and Lexington, KY. Buyers have until April 19 to submit a bid, and if multiple offers come in the auction will be held no later than April 27. “We obviously aren’t where we wanted to be,” Joseph-Beth president Neil Van Uum told […]
Finally, Judge Chin Decides: The Google Book Settlement Is Rejected
Nearly a year after Judge Denny Chin was confirmed to the 2nd Circuit Appeals Court, and more than 13 months after his hearing on the Google Book Settlement, he finally ruled. the settlement “is not fair, adequate or reasonable” and is rejected. While Judge Chin outlines a number of concerns, he notes one fundamental change that could make it acceptable: change it from opt-out to opt-in, and Chin says, “I urge the parties to consider revising the ASA accordingly.” Of course that would literally change everything, not only removing the settlement’s attempt to provide a legal and business-driven solution to identifying […]