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HenryTo
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HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 7857
Location: Houston, Texas & Los Angeles, California
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 Posted: Wed Dec 31, 2008 10:13 am Post subject: |
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Ackman's Pershing Square gives a brief reprieve for Borders. Following is courtesy of Retailing Today:
| Quote: | New updates on Borders financing situation
Borders Group this week announced an agreement with Pershing Square Capital Management, L.P. on behalf of its affiliates, to extend the expiration date of the previously announced Borders option to "put" its U.K.-based Paperchase gifts and stationery business to Pershing Square for $65 million, subject to certain conditions.
The "put" was due to expire Jan. 15, 2009, but has now been extended until Feb. 16, 2009. At the same time, the deadline for repayment of the $42.5 million senior secured term loan, which was originally payable to Pershing Square by Borders on Jan. 15, 2009, has also been extended to Feb. 16, 2009. Other terms of the "put" option and the term loan remain unchanged except that the approximately $1 million loan repayment premium that Borders is required to pay Pershing upon repayment of the $42.5 million loan remains due no later than Jan. 15, 2009.
RT Analysis...
Borders entered a broader financing deal with Pershing Square back in April that carries an interest rate of 9.8% on a $42.5 million senior secured term loan.
Since securing the loan, Borders' financial situation hasn't seen much improvement. The company reported a consolidated loss from continuing operations for the third quarter of $39 million or 64 cents per share, compared to $38.4 million or 65 cents per share in the third quarter of 2007. Comparable-store sales for Borders superstores decreased by 12.8% in the third quarter, and with music excluded, declined by 10.6%. Same-store sales at Waldenbooks decreased by 7.7% for the period. |
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HenryTo
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Joined: 06 Aug 2004
Posts: 7857
Location: Houston, Texas & Los Angeles, California
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| Posted: Mon Dec 29, 2008 10:33 am Post subject: |
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A bygone era, as the NY Times chronicles (laments?) the demise of the traditional bookstore:
http://www.nytimes.com/2008/12/28/weekinreview/28streitfeld.html?em
| Quote: | Book publishers and booksellers are full of foreboding — even more than usual for an industry that’s been anticipating its demise since the advent of television. The holiday season that just ended is likely to have been one of the worst in decades. Publishers have been cutting back and laying off. Houghton Mifflin Harcourt announced that it wouldn’t be acquiring any new manuscripts, a move akin to a butcher shop proclaiming it had stopped ordering fresh meat.
Bookstores, both new and secondhand, are faltering as well. Olsson’s, the leading independent chain in Washington, went bankrupt and shut down in September. Robin’s, which says it is the oldest bookstore in Philadelphia, will close next month. The once-mighty Borders chain is on the rocks. Powell’s, the huge store in Portland, Ore., said sales were so weak it was encouraging its staff to take unpaid sabbaticals.
Don’t blame this carnage on the recession or any of the usual suspects, including increased competition for the reader’s time or diminished attention spans. What’s undermining the book industry is not the absence of casual readers but the changing habits of devoted readers. |
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HenryTo
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Joined: 06 Aug 2004
Posts: 7857
Location: Houston, Texas & Los Angeles, California
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HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 7857
Location: Houston, Texas & Los Angeles, California
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| Posted: Wed May 28, 2008 2:31 am Post subject: |
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Borders ditches Amazon as its web-retailing platform in a last-ditch effort to drive sales. I am a Borders Rewards member and will no doubt try the website out over the next few days:
http://www.technologyreview.com/Wire/20829/?nlid=1101
| Quote: | Like Amazon.com and Barnes & Noble's Web site, Borders will offer free shipping on some orders over $25. But Borders also offers free shipping to its stores, where shoppers will be able to pick up a box containing their order about two days after buying. Ertell says the company expects this option to be popular in urban areas, for example, where people might not want a package left outside their home.
Shoppers enrolled in the Borders Rewards loyalty program, which includes about 26 million members, will be able to redeem rewards online -- something they couldn't do on the Amazon-partnered site -- as well as click on weekly e-mails to buy books, CDs and DVDs. The site also will offer used, out-of-print and rare titles. |
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