| Horror World http://horrorworld.org/msgboards/ |
|
| The Off Line Choices We Have May Be Dwindling... http://horrorworld.org/msgboards/viewtopic.php?f=2&t=4060 |
Page 1 of 1 |
| Author: | ttzuma [ Thu Mar 20, 2008 12:11 pm ] |
| Post subject: | The Off Line Choices We Have May Be Dwindling... |
Borders explores sale, suspends dividend By Yinka Adegoke (From Yahoo) NEW YORK (Reuters) - Book retailer Borders Group Inc (BGP.N) on Thursday suspended its quarterly dividend and said it was reviewing strategic options, including the sale of some or all of its businesses, and its shares sank more than 30 percent to a new year low. ADVERTISEMENT The company said its largest shareholder, Pershing Square Capital Management, had agreed to loan it $42.5 million and will receive options to buy a 19.99 percent stake in the company at $7 a share. Without the funding, the company may have faced liquidity issues, it said. "Borders effectively announced this morning that they are out of cash and took a stopgap funding" from Pershing, Credit Suisse analyst Gary Balter said in a research note. "We see little opportunity in the near term for Borders to be sold, with the No. 1 candidate Barnes & Noble not likely to pursue a deal," possibly at any price before a Chapter 11 filing, he added. For its part, industry leader Barnes & Noble (BKS.N) said it had not been approached by Borders investment bankers regarding a purchase but would take a look and review a possible sale if it was contacted. Borders said Pershing Square offered to purchase some of its businesses in Australia, New Zealand, Singapore and the United Kingdom for $125 million. Borders has the right, but not the obligation, to require the hedge fund to buy those assets under the backstop purchase offer. Borders shares had risen as much as 20 percent before the bell but reversed course and sank more than 33 percent in morning trading to a new low. Barnes & Noble, which reported better-than-expected earnings and raised its dividend on Thursday, was up more than 6 percent. "This will be a challenging year for retailers due to continued uncertainty in the economic environment," Borders Chief Executive George Jones said in a statement. "Looking forward to 2008 and beyond, the company determined that additional capital was required to execute our operating plan." Without the funding, Borders may have faced liquidity issues in the next few months, Jones said. Borders said it was suspending the dividend to preserve capital for operations and strategic initiatives. Borders said it had appointed JPMorgan Securities (JPM.N) and Merrill Lynch & Co (MER.N) as financial advisers. Borders reported net profit of $64.7 million, or $1.10 a share, for the fourth quarter ended on February 2, compared with a year-earlier loss of $73.6 million, or $1.25 per share, that included large charges for closing Waldenbooks stores. Excluding nonoperating charges and discontinued operations, earnings were $1.44 a share. Analysts on average expected $1.42 per share, according to Reuters Estimates. Revenue fell to $1.35 billion from $1.37 billion, but Borders said sales were up 2.8 percent after excluding the impact of an extra week in the year-earlier period. Jones said that although the company was on track to reach its financial targets, worsening economic conditions would slow its progress. At Barnes & Noble, net income came to $115 million, or $1.79 a diluted share, for the fiscal fourth-quarter ended February 2, down 9 percent from $126.7 million, or $1.83 a share, a year earlier. Excluding benefits from property insurance and litigation settlements, earnings were $1.69 a share, compared with the $1.70 analysts expected, according to Reuters Estimates. Consolidated sales at Barnes & Noble fell about 2 percent to $1.85 billion from the year earlier, which included an extra week. Barnes & Noble said its board raised its quarterly dividend to 25 cents a share from 15 cents a share, beginning with the June payout. Borders began a turnaround plan last year. It is closing underperforming Waldenbooks stores, weighing options for its international units, and refocusing on its core U.S. store operations. The retailer is trying to fend off competition not only from Barnes & Noble, but also from online retailers, where consumers have been turning for cheaper books, CDs and DVDs. Borders shares were down $2.39 or 33.8 percent, to $4.70 in morning trading on the New York Stock Exchange, while Barnes & Noble was up $1.85, or 6.6 percent, to $29.85. |
|
| Author: | ttzuma [ Thu Mar 20, 2008 12:12 pm ] |
| Post subject: | |
One less place maybe to hold a book in your hand before you purchase it. Tt |
|
| Author: | DGM [ Thu Mar 20, 2008 12:38 pm ] |
| Post subject: | |
I wonder if Chapters here in Canada is struggling at all. That would suck. |
|
| Author: | HugeHorrorFan [ Thu Mar 20, 2008 12:42 pm ] |
| Post subject: | |
This should kill your curiosity DGM: http://www.chapters.indigo.ca/Press-Rel ... 1-art.html |
|
| Author: | DGM [ Thu Mar 20, 2008 12:55 pm ] |
| Post subject: | |
|
|
|
| Author: | undead [ Thu Mar 20, 2008 1:04 pm ] |
| Post subject: | |
Tony, that is terrible. I buy almost all my books at either B&N or Borders. Without being able to hold the book in my hands, the era of book shopping will become nothing more than a chore.... |
|
| Author: | DGM [ Thu Mar 20, 2008 1:36 pm ] |
| Post subject: | |
Things are bound to improve once the US economy pulls itself out of the crapper. These things are cyclical. |
|
| Author: | TMLCrow [ Thu Mar 20, 2008 6:24 pm ] |
| Post subject: | |
| Author: | ttzuma [ Thu Mar 20, 2008 7:57 pm ] |
| Post subject: | |
| Author: | Hero Killer Id [ Fri Mar 21, 2008 2:07 am ] |
| Post subject: | |
| Author: | ttzuma [ Fri Mar 21, 2008 8:07 am ] |
| Post subject: | |
| Author: | Monty Grue [ Fri Mar 21, 2008 1:33 pm ] |
| Post subject: | |
I've got the Borders reward card and usually only buy when there is a Coupon. In most cases, the selection in stores is kind of thin. I worked for Borders in the early 90s and there were many obscure titles in all areas, and folks would drive a 100 miles to shop. Of course, back then there was only one store for the entire East Coast at the time with no stores in the South or the West. Now it takes 15 minutes to two different stores. Bump that up to four or five superstores in the 30 minute range. That doesn't include B&N. I think they really do need to rework the superstore model on every corner. |
|
| Author: | Laurel in Ely [ Fri Mar 21, 2008 3:20 pm ] |
| Post subject: | |
As most of you know, I have to buy all my books online. I don't miss touching before buying, but I do miss browsing the aisles. When I need a "book smell" fix, I go to the library. We do have a small, but very nice library here in Ely. 
|
|
| Author: | cid [ Fri Mar 21, 2008 3:27 pm ] |
| Post subject: | |
| Page 1 of 1 | All times are UTC - 5 hours [ DST ] |
| Powered by phpBB® Forum Software © phpBB Group http://www.phpbb.com/ |
|