Borders Group (BGP)

[HenryTo]

Company puts itself up for sale - gets "backstop" financing from Pershing Square (Bill Ackman, who already holds a sizable stake in the company) - fearing a liquidity crunch and a slowing economy going forward:

http://stlouis.bizjournals.com/stlouis/stories/2008/03/17/daily60.html?ana=yfcpc

[HenryTo]

Borders ceases to exist:
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Last Borders shoppers wistful, looking for deals
As Borders shelves empty and the chain closes, shoppers reflect on what they'll miss

NEW YORK (AP) -- The scene this weekend at the last of the remaining Borders bookstores to close was more like a memorial service than a funeral. Shoppers reminisced fondly about their beloved bookseller rather than grieve its loss.

Amid upbeat jazz music and large red-and-yellow signs announcing the "Final Days" of the Borders in Queens in New York City, customers snagged deals on used chairs and coffee machines. At a Borders in Cincinnati, readers were eager to grab book titles for up to 90 percent off. And signs at a Borders in Cambridge, Mass., implored shoppers to haggle: "No Reasonable Offer Refused."

"I find it really sad," said Victoria Florea, 49, who was looking for discounts this weekend at the Cambridge store so she could use her $50 gift card before it closes. "I'm glad to get these bargains, but I'm sad at the same time."

Borders, an Ann Arbor, Mich.-based chain that pioneered the big-box bookselling concept and grew to 1,249 stores at its peak in 2003, will cease to exist by the end of the day on Sunday. It's a victim of a shift in the industry brought on by customers who'd much rather read their favorite titles on an electronic book or tablet computer than turn the page on a paperback. The chain's demise is expected to have wide-reaching effects on everyone from authors and publishers who will have to find new ways to market their work to competitors like Barnes & Noble that will benefit from losing a big rival.

"The absence of Borders is going to be felt across the industry," said Michael Norris, a Simba Information senior trade analyst. "The loss of the `showroom' effect of bookstores is not going to be replaced anytime soon."

Started in 1971, Borders grew to become a giant in the industry, operating Borders and Waldenbooks bookstores. But the company failed to adapt quickly to the changing industry and lost sales to the Internet, discounters and other competition. It filed for bankruptcy protection in February and has since shuttered stores and laid off thousands of employees. Borders began liquidating its remaining 399 stores in July when a $215 million "white knight" bid by a private-equity firm dissolved under objections from creditors and lenders who argued the chain would be worth more if it were liquidated immediately.

A few vestiges of Borders will remain. Books-A-Million is taking over 14 stores. And bidders including Barnes & Noble and Malaysian company Berjaya Books (which operated some Borders in Malaysia) will take over $15.8 million in Borders' intellectual property. That includes trademarks; the Borders, Waldenbooks and Brentano's trade names; Internet domain names; and the Borders.com e-commerce website.

That's little solace to some shoppers who were taking advantage of the deals at the remaining Borders stores this weekend. Many wondered where they would shop once the chain disappears -- even though many of them already are migrating to online booksellers and discount chains.

Steve Mannix on Friday carried out 10 books and two magazines for $11.79 total at the Waldenbooks store in Cincinnati's Western Hills neighborhood. Most of the books were graphic novels about vampires, super-heroes and Japanese characters. He said he had been interested in the artwork and stories in graphic novels, but didn't want to pay $20 for one book.

"It's sad," he said, loading the books into the trunk of his car. "I used to come to this store all the time."

Still, Mannix said he reads online and buys most of his books at a Half Price Books discount bookstore, which he says saves him a lot of money. "They really priced themselves out of business," he said of the Waldenbooks store.

At the Queens store in The Shops at Atlas Park in Glendale, half a dozen shoppers milled around scantily filled shelves. Signs touting up to 90 percent off books and 50 percent off fixtures peppered Borders' large glass windows. A wooden sign showed photos of fixtures like coffee machines, lockers and chairs - all marked sold. A bright red display shelf stood empty and abandoned. Sale price: $100.

"What a shame," said Marcin Machula, 40, a trainer from Queens who was in the store over the weekend. He said he has been coming to the Glendale Borders once a month for years to have a cup of coffee and look for books on sports performance. "This place is going to be missed."

At the Borders in CambridgeSide Galleria mall in Cambridge, Mass., Mary Jane Diodati, a lawyer on disability, also pondered the end of an era.

"I really like the camaraderie and the peace of just being in a book store -- it is different from a library, in my opinion," she said.

AP Writer Dan Sewell in Cincinnati and Rodrique Ngowi in Cambridge, Mass., contributed to this report.

[HenryTo]

End of an era, as Borders is set to be liquidated over the next couple of months:

http://www.bloomberg.com/news/2011-07-18/borders-landlords-and-creditors-kobo-object-to-bankruptcy-liquidation.html?cmpid=yhoo

E-Reader maker Kobo's response:

http://blogs.forbes.com/elizabethwoyke/2011/07/18/e-reading-company-kobo-responds-to-borders-liquidation-news/?partner=yahootix

[rffrydr]

Ackman, that master of distressed investing, goes bust on this buy-and-hold--maybe.
_________________
Today is the Tomorrow you worried about Yesterday!

[HenryTo]

Morningstar on BGP's bankruptcy filing and its potential impact on BKS:

[HenryTo]

End of the road for BGP:

[HenryTo]

Borders introduces its own e-reader at $149.99:

http://www.dailytech.com/article.aspx?newsid=18333

[HenryTo]

Book retailing still a horrible business - especially if you still sell music CDs and your two biggest competitors are Barnes & Noble and Amazon.com:
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Borders loss is wider than expected; shares fall
Tue Aug 25, 2009 2:30pm EDT

* Q2 loss ex-items 21 cts/shr; Wall St view loss 16 cts
* Revenue down 17.7 pct

* Shares fall 6.8 percent (Adds analyst comment, stock activity, byline)

By Brad Dorfman

CHICAGO, Aug 25 (Reuters) - U.S. bookseller Borders Group Inc (BGP.N) posted a wider-than-expected quarterly loss on Tuesday as sales slumped, and its shares fell nearly 7 percent.

The second-largest U.S. brick-and-mortar book retailer, behind Barnes & Noble Inc (BKS.N), posted a net loss of $45.6 million, or 76 cents per share, in the second quarter ended Aug. 1, compared with a loss of $11.3 million, or 19 cents per share, a year earlier.

Excluding one-time items, the loss was 21 cents a share. Analysts on average had forecast a loss of 16 cents a share, according to Reuters Estimates.

Sales fell 17.7 percent to $616.8 million.

Same-store sales, a closely watched measure of retail performance, fell 13 percent at Borders superstores, excluding multimedia products, which the company has removed from stores. Same-store sales fell 10.8 percent at its Waldenbooks stores.

Booksellers have had to contend with a lingering slump in the book industry as consumers have headed online -- especially to Amazon.com Inc (AMZN.O) -- to buy books.

Borders has been exiting shrinking categories like music and putting a greater focus on helping shoppers choose books. It has cut jobs, inventory and costs in the past year.

Credit Suisse analyst Gary Balter said in a research note that investors should start looking for that overhaul to start bearing fruit in the second half of the year, especially as the company's results will compare with big sales declines in 2008.

"Also, there is less room for cost cutting, which has helped support earnings over the last several quarters, and the company is now starting to lap that and needs to reinvest in stores," Balter said.

Borders, which last year faced liquidity problems, has been boosting its balance sheet and cutting its debt in recent quarters. In the second quarter, debt, net of cash, was $242.5 million, down from $421.8 million a year earlier.

Borders shares fell 25 cents to $3.45 in afternoon trade on the New York Stock Exchange. (Additional reporting by Alexandria Sage; Editing by Derek Caney and John Wallace)

[HenryTo]

Borders appoints new CEO, CFO, and the creation of a Chief Administrative Officer to lead their turnaround efforts:

http://www.retailingtoday.com/story.aspx?id=89737

[HenryTo]

Ackman's Pershing Square gives a brief reprieve for Borders. Following is courtesy of Retailing Today:

[HenryTo]

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

[HenryTo]

Interestingly, Ackman now calling for Amazon to acquire Borders:

http://dealbook.blogs.nytimes.com/2008/06/13/ackman-urges-borders-to-consider-sale-to-amazon/

[HenryTo]

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