Borders Reorganisation: News bids?

[SensualPoet]

Originally Posted by fjtorres

Did the report say why the deal fell through?
Did the court reject the bid or did creditors torpedo it?
It'll be interesting to see who gets the name if they go to liquidation.

Najafi, under his bid, has the option to run the business as a going concern but the right to eventually liquidate. He was looking for 30 day terms on inventory from major publishers -- standard terms. Two publishers said no; he walked. The other rumoured bidders -- Gore Brothers and Hilco -- appear to have gotten cold feet before making a formal bid.

[RichL]

Being the vindictive kind of guy I am, I hope Barnes & Noble, Borders and whoever picks up their remains will totally collapse. I have never forgiven them for destroying small local businesses in pursuit of investor greed. I feel the same way about the continuing and additional destruction by Amazon.

[fjtorres]

Originally Posted by SensualPoet

Najafi, under his bid, has the option to run the business as a going concern but the right to eventually liquidate. He was looking for 30 day terms on inventory from major publishers -- standard terms. Two publishers said no; he walked. The other rumoured bidders -- Gore Brothers and Hilco -- appear to have gotten cold feet before making a formal bid.

In other words, two of the publishers *want* Borders liquidated and its shelf space gone forever.
Ohhh-kaaaayyy...

[SensualPoet]

Originally Posted by fjtorres

In other words, two of the publishers *want* Borders liquidated and its shelf space gone forever.
Ohhh-kaaaayyy...

Yes, it does remind me of the warning adage: "Be careful what you ask for ..."

[Fbone]

Originally Posted by fjtorres

In other words, two of the publishers *want* Borders liquidated and its shelf space gone forever.
Ohhh-kaaaayyy...

Since they haven't received payment for months ...

[fjtorres]

Originally Posted by Fbone

Since they haven't received payment for months ...

So they prefer whatever they can squeeze out of the liquidation and no future income out of a brand that still controls 20% of print book sales?
Doesn't sound like they care overmuch about future impacts of channel consolidation.

We'll have to remember this the next time the BPH mouthpieces whine about Amazon's "market domination".

[Fbone]

Originally Posted by fjtorres

So they prefer whatever they can squeeze out of the liquidation and no future income out of a brand that still controls 20% of print book sales?
Doesn't sound like they care overmuch about future impacts of channel consolidation.

We'll have to remember this the next time the BPH mouthpieces whine about Amazon's "market domination".

Well, if you're owed millions of dollars and Najafi cannot guarantee future payments ...

Najafi planned to close over 50% of the remaining stores. Future sales would have been greatly reduced anyway. Maybe the publishers were hoping another entity would fill in the retail void.

[fjtorres]

Originally Posted by Fbone

Maybe the publishers were hoping another entity would fill in the retail void.

Another entity, emerging full-grown out of nowhere to instantly serve 200 markets?
Right. At a time when Borders drew only three half-hearted bids and B&N' best bid isn't much better, some retailing wizard is going to swoop in and rescue the BPHs from their own mess.

You are probably right.
That is exactly the kind of short-sighted magical thinking the BPHs are becoming synonymous with. Nothing like giving Amazon, Walmart, and B&N more market share leverage to squeeze you with.

I've no doubt the geniuses at the two glasshouses can readily rationalize their move as protecting their quarterly bottom line, just as I have no doubt Bezos is rubbing his hands in glee at the free shot at a full 18% of the US market, especially since a good chunk of the sites Najafi was keeping have no real competition anywhere near.
Great long-term thinking, that.

Reminds me of a Geoff Johns quote: "Hope is sitting around doing nothing, waiting for somebody else to solve your problem."

[SCION]

Stopped by my nearest Borders last night to say goodbye. It would be a huge eyesore if this property were vacant. I kept saying to myself, "This would be a great spot for Barnes and Noble". Maybe they'll relocate from their present nearby location to this more upscale one.

[SensualPoet]

Well, the bidding has closed as of 5 pm Sunday, and no bidder has emerged. Next step, back to the court to begin an "in courtroom" auction to liquidate the company. There is only one bid: $252 million to take over the assets as is and sell them of as quickly as possible as receivership with proceeds going to the receiver and creditors. The final result: all 400 remaining stores closed; all leases annulled, and 11,000 people out of work.

Latest news here: http://online.wsj.com/article/SB1000...560587970.html

Bye, bye Borders.

[Fbone]

Saddened to hear the loss of 11,000 jobs.

[fjtorres]

Borders was probably headed for chapter seven anyway, but the employees deserved the chance Najami offered.
I just hope they identify the oh so "hopeful" BPHs that torpedoed the deal.

[SensualPoet]

One wonders if it was News Corp's HarperCollins that "pulled the plug". They appear to have a few distractions near the top at the moment ...

[Deniseg53]

I am, personally, pretty sad about what is happening. I've been with Borders for nearly 13 years. I have loved bookselling more than I can say. Not only will I be one of the 11,000 people to lose a job, but I'll also be losing a chunk of my heart.

[Danielle]

Originally Posted by Deniseg53

I am, personally, pretty sad about what is happening. I've been with Borders for nearly 13 years. I have loved bookselling more than I can say. Not only will I be one of the 11,000 people to lose a job, but I'll also be losing a chunk of my heart.

My heart is breaking also. My friends and I always look forward to "new" book Tuesday at Borders. Meeting there buying books and have a latte.

The Barnes and Noble by my house just isn't the same.