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
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 […]
People and Announcements
Jan Girando, Vice President of Andrews McMeel’s Product Development Group, will retire as of April 30. She had been with the company since 1988. Book critic Gail Caldwell and books & publishing reporter David Mehegan are among 24 Boston Globe staffers who took a buyout from the paper this week. Boston Herald “The 2009-2014 World Outlook for 60-milligram Containers of Fromage Frais,” by Philip M. Parker won the Diagram Prize, awarded Friday by The Bookseller.
Scholastic Down Slightly, As Loss Grows
Scholastic reported third quarter sales from continuing operations of $425 million, down 3.5 percent, and a bigger loss from continuing operations before taxes of $41.4 million. (That loss, not counting special items, was much larger than forecast by the analyst who covers Scholastic, who was expecting just one cent a share. Sales were about $25 million below the expectation, too.) But they celebrate having “successfully sustained revenues last quarter in our market-leading children’s book and educational technology businesses” and reaffirmed guidance to investors for the fourth quarter and full year. Corporate overhead rose for the quarter, including $4.8 million in […]
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 […]