06-08-2011, 07:48 PM | #1 |
Wizard
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Borders Reorganisation: News bids?
Borders, which is currently in court protected bankruptcy, has a bid from the investment firm Gores Group which specialises in turn-around situations where it finds the value, re-animates management, and helps the company return to profit, later selling it as a going concern. They have a bid in to buy 265 of the remaining 400ish stores.
Today a second potential bidder has shown up which opeates the same way: it turns around companies and later sells the profit generating venture. http://online.wsj.com/article/SB1000...371762104.html A couple of snips: Najafi, a boutique Phoenix-based firm that usually makes investments of $1 billion or less, is competing with Los Angeles-based Gores Group to purchase the beleaguered bookstore chain, the people said. Both Najafi and Gores attempt to buy companies that have fallen on hard times and make money by turning them around. Founded by Jahm Najafi in 2002, Najafi bought Network Solutions, a provider of Web address registrations, in 2003 for $20 million in cash and an $80 million assumption of debt. In 2007, Najafi flipped the company for $800 million, or more than 30 times its initial investment. Mr. Najafi is also vice chairman of the Phoenix Suns professional basketball team. Najafi is well-known in the book retail and publishing industries. In 2008, the firm acquired Direct Brands Inc., a direct-marketing company home to brands such as the Book of the Month Club, DoubleDay Book Club and Columbia House DVD. It would be nice to find a rescue for Borders which was intent on being a bookstore because there is still life in the industry provided the new mix of physical product and customer experience can be delivered. |
06-08-2011, 08:01 PM | #2 |
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Not so good in Australia- the last stores are due to close at the end of the week.
Interestingly I went to one used library book sale yesterday - packed with people buying armloads of books. These were mostly university students, young and just the demographic book publishers say don't read!!! And there is another sale on the weekend and I would imagine that (judging from previous sales) that you will have to fight your way to the tables. They have had to move the 6 monthly sale to a bigger venue! The most common comment about the closure of the big booksellers was that "they only sold rubbish". I also heard other comments which pointed to a total lack of understanding about their product - philosophy books in the "Business" section? |
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06-08-2011, 10:05 PM | #3 |
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I think it will be very interesting to see what happens with the Kobo/Borders combo. They have the infrastructure to become the best "open" ePub based ecosystem in the US market. Books you buy from Kobo/Borders is a book you can read on any ePub supporting device. That is definitely not the case with the locked-in formats of Amazon and B&N.
Sony was on the right track on this, but they just did not have the business sense to get this done while they had a chance. |
06-08-2011, 10:30 PM | #4 |
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06-09-2011, 07:51 AM | #5 |
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What you say is correct. But i'm referring to being able to move your books across devices. You cannot read Amazon or B&N books outside of their ecosystem without incurring in the DRM removal, which should be unnecesary (and against the law).
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06-09-2011, 09:16 AM | #6 | |
monkey on the fringe
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Quote:
Or you could get a tablet and download all of the book apps. |
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06-09-2011, 10:02 AM | #7 |
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I think we are seeing this topic from 2 different point of views. Both of them valid. You seem to focus on device capabilities, I focus on ebook portability regardless of the device. From my perspective, Any book seller that ties my purchased content to a specific software or device is at a disadvantage. I just think it will be very interesting to see how Borders / Kobo will market this strength. I truly believe it is an advantage, specially from a global market perspective.
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06-09-2011, 10:30 AM | #8 |
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I'm not sure I'd be buying any bookstore right now, for fear that I was buying a buggy whip retailer. Print books will be around for quite some time, maybe forever, but their heyday is behind them.
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06-09-2011, 03:56 PM | #9 | |
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Quote:
B&N uses a DRM scheme that is official supported by Adobe's products. |
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06-12-2011, 10:03 PM | #10 |
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Sadly, they announced that they are closing the large Borders near my office. I always bought something when I went because I wanted them to make it. This surprised given the location always seemed busy (although admittedly, I only saw it during lunch...but the lines would get quite long).
Apparently, under the reorganization guidelines even some of the profitable stores will be closing (lease requirements). |
06-13-2011, 12:23 AM | #11 |
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That used to be true but newer ereaders should handle so-called B&N DRM (except for Sony). (And it is only 'B&N DRM' because no other storefronts use this flavor yet.) I can read B&N books on my Entourage Pocket eDGe, which is nearly a year old now, and also with Bluefire Reader on iOS. I suspect the new Kobo will also though nobody has one yet to check, and Aldiko on Android probably will also. It behooves all licensees to support B&N DRM, especially if they hope to sell their device and woo B&N customers to their own storefront. I don't understand Sony's rationale, except perhaps that they are trying to hold down development and support costs and wait for a more major upgrade (ePub3 perhaps).
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06-13-2011, 03:55 PM | #12 |
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06-15-2011, 06:10 PM | #13 |
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Borders is a making tiny headroads ... it has come to an agreement to keep open 11 stores previously marked for closure ... 51 more stores were to close, now only 40 more will. Publisher's Weekly has more here: http://www.publishersweekly.com/pw/b...sing-list.html
The current list (of the 51) is here: http://blogs.wsj.com/deals/2011/06/0...eres-the-list/ There is another hearing Jun 20th to review the remaining 40 on the list and appoint a trustee to begin the liquidation sales there. |
06-15-2011, 08:56 PM | #14 |
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Wasn't it just last year that B&N was looking for a buyer too?
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06-16-2011, 08:17 AM | #15 |
Wizard
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B&N finally found a buyer ... they are doing the closing sale dance with John Malone's Liberty Media which will keep Leonard Riggio in place.
And in the latest Borders installment this morning, it appears the remaining 40 stores on the original 51 stores to be closed this summer have also now been given a reprieve. It still needs court approval next week: http://online.wsj.com/article/SB1000...167582350.html That would rescue the Boston store mentioned at post 10 of this thread, the one on School Street, if I am reading this announcement correctly. It also suggests there are serious buyers in the wings for a substantial portion of the existing business. |
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