Though the myriad of objections filed by landlords by Monday afternoon’s deadline over Borders’ prospective sale to Najafi was par for the course, Borders filed their own response motion in bankruptcy court late Tuesday. In it they say the accelerated sale process owes to GE Capital’s stipulation under the amended financing agreement that the company must find a buyer by July 29 – and have the sale approved by July 22 — lest they default. “The sale simply cannot take place in the timeframe required if there are any further delays in the schedule,” Borders stated. “If the sale does […]
Legal
Borders Has Preliminary Sale Agreement with Najafi
Borders announced Thursday night it has entered into an asset purchase agreement with Najafi Companies’ Direct Brands unit, which it will submit to the bankruptcy court as a stalking horse bid as part of a court-supervised auction of the bookseller. “Purchase” is an interesting term (“take” might be another one), since Najafi would put up $215.1 million for “substantially all of the company’s assets,” acquiring inventory potentially worth far more than that, along with assuming $220 million in liabilities. It’s not clear how many locations Najafi intends to keep operating–but there is an agreement in place already with Hilco and […]
Judge Supports CIA’s Pre-Pub Review; Birther Authors Sue Over Esquire Satire
Alexandria, VA US District Judge Gerald Lee has firmly supported the CIA’s pre-publication review process for books by agency employees and former employees–including their common practice of taking their own sweet time in commenting on manuscripts. Judge Lee ruled against pseudonymous author Ishmael Jones and his book THE HUMAN FACTOR: Inside the CIA’s Dysfunctional Intelligence Culture from Encounter Books. Jones published his book without the agency’s permission, after being denied approval on the first version of his manuscript, and receiving only partial approval for a revised version. Attorney Laurin Mills had asserted that the CIA breached the pre-publication review agreement […]
Briefs: Pottermore Details Leaked; BN eBook Market Share; Indies Charging For Events, Again; And More
The Times UK claims they received an “official marketing memo” by mistake with details about JK Rowling’s Pottermore website, which officially launches Thursday at 7 AM EDT at an event at the Victoria & Albert Museum in London. According to the story, Pottermore is “a sophisticated online game that contains clues to prizes that are hidden in the real world. These are an unstated number of magic wands secreted in Britain and America, and possibly other countries.” The Times notes it’s still not clear whether the treasure hunt is Pottermore itself, or a marketing ploy, or if the “leak” is […]
Briefs: Amazon Nears Sales Tax Deal with Texas; Whitcoulls Sale Final; And More
After months of fighting over sales tax issues, Amazon appears to be close to a deal with the state of Texas that would see Amazon creating more than 5,000 jobs and invest $300 million in the state over the next three years, so long as Texas exempts Amazon from paying sales tax for the next four and a half years. The proposal, which does not explicitly name Amazon but , is attached to a state Senate fiscal matters bill that must be passed in order to balance the next fiscal year budget. It would also not exempt Amazon or any […]
Borders Loses Another $35 Million in May As Sales Talks Intensify
The intensified need for a sale and last-minute maneuvering to get its debtor-in-possession loan extended make all the more sense in light of Borders’ earnings report for the first 28 days of May. The company lost another $35.4 million during that period, of which a little more than half – $18.1 million – came from continuing store operations, with the rest owing to reorganization fees. That means Borders has now lost more than $191 million since filing for Chapter 11 in February. Total revenue for the month was $97 million. But you’d never know if you were reading ceo Mike […]