Amazon will close three distribution centers in Munster, Ind., Red Rock, Nev., and Chambersburg, Pa., the first such moves since 2006. Amazon said the closures “are part of a reorganization of its fulfillment network” — moving capacity to larger warehouses that can “better balance product mix and customer orders.” The 215 workers at the three warehouses slated for closure will receive pay through May 25, receive benefits through May 31, and get a minimum of 3 weeks severance pay, according to Amazon spokesperson Patty Smith, who said “eligible” workers will be offered the chance to transfer to other U.S. distribution centers.TechFlash
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BAM Board Buys Up $8M of Stock
Books-A-Million’s board of directors has put into effect a plan to buy up to $5 million in shares of company stock as of April 30, replacing a previous plan where BAM bought $1.8 million of its stock. The company has 15.6 million shares of stock currently worth about $68.1 million.
Springer Placed on the Sales Block
Private equity companies Candover and Cinven are believed to be preparing to put Springer Science and Business Media up for sale, with UBS and Goldman Sachs apparently appointed to sound out potential bidders. Sources tell the Guardian that prospective purchasers have until the end of next week to register their interest. Springer could fetch up to £2bn from financial or trade buyers, though the current economic climate may make meeting that price difficult and the head of one competing venture capital firm said he thought it was “unlikely Springer would attract much interest, given the poor short-term prospects for the […]
Changes to Amazon UK's Advantage Program Provoke Publisher Ire
Amazon UK has unveiled a change in terms for publishers in its Advantage program, offering “early payment” in 15 days with an additional discount of 2 percent, alongside a revision of the “standard” payment period to 60 days. Some publishers have claimed that the consignment-based scheme is “utterly outrageous” and “thuggery” even as others are more sanguine. The changes are effective as of April 1 and members are required to make their choice known to Amazon by that date. The email outlining the new terms arrived this week, giving publishers just days to reply. Said one IPG member contacted by […]
Delisting Possible as Borders Prepares to Unveil Strategy Next Week
With Borders set to declare fourth-quarter results next week, expectations are grim: more multi-million dollar losses, store closures, payroll slashings and, with shares currently trading at 64 cents per share, potential de-listing from the NYSE. Shareholders will hear more about the company’s strategy, including plans for a reverse stock split to satisfy NYSE conditions, next Wednesday when CEO Ron Marshall hosts a conference call with analysts and investors. One turnaround expert tells the Detroit Free Press that Borders seems to be one of buying time and hoping economic recovery is just around the corner. “They are figuring their brand name […]
Report Cites Book Trade's "Exclusionary" Tactics Towards 20m Readers
A report due out this week from research conducted by HarperCollins, the Trade Publishers Council and the National Year of Reading (NYR) says the book trade is “too intimidating” towards the C2DE socio-economic group, characterized as lower income, non-professional families. The report found that many families in this group, numbering up to 20 million, found books to be “alien and unattractive” while reading was considered “an anti-social activity for people who don’t know how to live.” NYR project director Honor Wilson-Fletcher said: “These are good solid families who don’t have literacy problems but who just don’t read. They are one […]