Borders Group, one of the two main brick-and-mortar bookstore competitors to online-only retailer Amazon (AMZN), recently filed for Chapter 11 bankruptcy. The development could present new opportunities for Amazon, which has already benefited from the growing digitization of literary content. Borders has indicated that it will close 200 stores, representing about 30% of its 642 stores in operation. The stores are expected to close by April 2011.
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FeedAmazon, Apple and Google Benefit from Borders Bankruptcy
Continue reading Amazon, Apple and Google Benefit from Borders Bankruptcy
Borders Nears Possible Bankruptcy Filing
Rumors have been circulating for almost a month about Borders' (BGP) possible bankruptcy filing. People familiar with the situation told The Wall Street Journal that the filing could come as early as the middle of this month.
Borders has been trying to hold off the filing by delaying payments to vendors. But this is only temporary. Now the matter has reached a critical stage. The company has obtained about $500 million to $550 million in debtor in possession financing that would keep the company operating after a court filing.
GE Capital Commits $550 Million to Borders
Reports surfaced Thursday that Borders (BGP) started negotiating with banks for financing to help keep the bookstore chain liquid during bankruptcy proceedings. Later in the evening, GE Capital made a $550 million financing commitment to the embattled company.
This financing should allow Borders the financial flexibility and level of liquidity to advance its restructuring plan. The plan includes closing stores, cutting costs, expanding its rewards program, and increasing non-book offerings -- all with the goal of improving cash flow and profits. Borders did note that it will explore alternative possibilities, such as restructuring its debt under court supervision.
Borders Delays Payments to Vendors
Borders Group (BGP) has been reporting losses for years. Its third quarter results showed a sharper loss and is fueling concerns about the bookstore's future, as reported by USAToday.
The company is on the defensive. It has sold off 16 stores and other assets to meet debt payments. Now creditors have cut their credit lines, forcing the bookseller to cut back further. The reason given is that Borders' inventory value has fallen.
Closing Bell: Ringing Out the Old Year, Looking Forward to the New (BGP, ZBB, UAM, AFOP, IMAX)
The last trading day of 2010 seems to indicate that traders are committed to maintaining the solid gains of the past year. Volume was light with fewer than 1 billion shares traded by early afternoon. Oil prices pushed back to over $91/barrel, and gold has also risen more than 1%, to around $1,420/ounce. The dollar gained a bit of strength to the euro, but continues its slide against the Japanese yen.
Here are the numbers for late afternoon trading today:
Dow Jones 11,577.51 +7.80 (0.07%)
S&P 500 1,257.64 -0.24 (-0.02%)
Nasdaq 2,652.87 -10.11 (-0.38%)
The Week in Preview: Employment, Housing, Manufacturing, Earnings Expectations
Investors nervous about the possibly stalled economic recovery -- or worse, the beginning of the latter phase of a double-dip recession -- were not pleased with last week's housing numbers. Things were perhaps ameliorated somewhat by durable goods order numbers and a revised GDP that weren't as bad as expected, but that didn't stop the Dow from dipping below 10,000 later in the week, before fighting its way back above the benchmark to end the week, thanks largely to Fed chair Bernanke's comments on Friday.
Though the end of August is usually quiet, this week lots more economic data are due out, including more housing numbers: The Case-Shiller Home Price Index for June on Tuesday, construction spending numbers for July on Wednesday, and NAR's pending home sales for July on Thursday. There's not expected to be much to get excited about in these numbers.
Continue reading The Week in Preview: Employment, Housing, Manufacturing, Earnings Expectations
Earnings Highlights: AutoZone, Borders, Campbell, Costco, Heinz, J. Crew, TiVo ...
Below are some highlights from this past week's earnings coverage on BloggingStocks. Click through to the original posts for more details.
- Ann Taylor Stores Corp. (ANN) shares rallied on heavy volume after it posted better-than-expected Q1 earnings.
- AutoZone Inc. (AZO) Q3 earnings easily beat consensus expectations and same-store sales rose sharply.
- Borders Group Inc. (BGP) posted a wider operating loss, decreasing gross margin, and a same-store sales decline.
- Campbell Soup Co. (CPB) posted strong Q3 results and offered guidance, boosting shares on a down-market day.
- Costco Wholesale Corp. (COST) posted better-than-expected Q3 results, due in part to a surge in membership sales.
Continue reading Earnings Highlights: AutoZone, Borders, Campbell, Costco, Heinz, J. Crew, TiVo ...
Earnings Highlights: Borders, CarMax, LDK Solar, Mosaic, RIM, Rite Aid ...
Here are some highlights from this past week's earnings coverage on BloggingStocks:
- Acuity Brands Inc. (AYI) Q2 results were essentially flat but an analyst's upgraded helped boost shares.
- Borders Group Inc. (BGP) reported strong Q4 earnings due to cost cutting but revenue continued to decline.
- Cal-Maine Foods Inc. (CALM) received an analyst's downgrade on valuation following release of its Q3 report.
- CarMax Inc. (KMX) rose to a new 52-week high following better-than-expected Q4 earnings and sales results.
- Charming Shoppes Inc. (CHRS) posted a smaller-than-expected Q4 net loss and said same-store sales declined.
Continue reading Earnings Highlights: Borders, CarMax, LDK Solar, Mosaic, RIM, Rite Aid ...
Borders Tells the Right Story
There has certainly been much worry that book retailer, Borders Group (BGP), is headed for a bankruptcy filing. Two years ago, the company had to take a $42.5 million loan from Pershing Square Capital Management, which is the company's largest shareholder. Since then, the loan has undergone three renegotiations. Also, Borders has gone through two CEOs in 15 months and is trying to find ways to stay relevant as the market undergoes change from the digital revolution.But this week, the shareholders of the beleaguered company got some great news. Borders was able to repay the loan.
Borders gets an e-book play with an investment in Kobo
In the publishing world, it's a mad scramble to get a piece of the e-book market. While the dominant player is Amazon.com (AMZN), there are other strong offerings from operators like Barnes & Noble (BKS) and Sony (SNE).But one of the companies left out has been Borders (BGP) . Then again, the company's fortunes have been ailing over the past few years.
Continue reading Borders gets an e-book play with an investment in Kobo
Earnings highlights: Burger King, Dell, Dollar Tree, J. Crew, Staples, Toll Bros. ...
Here are some highlights from last week's earnings coverage from BloggingStocks:
- American Eagle Outfitters Inc. (NYSE: AEO) Q2 profit fell short of estimates as same-store sales declined.
- Ann Taylor Stores Corp. (NYSE: ANN) Q2 earnings beat very low expectations and same-store sales fell.
- Big Lots Inc. (NYSE: BIG) reported better-than-expected numbers for Q2, sending shares upward.
- Burger King Holdings Inc. (NYSE: BKC) posted a better-than-expected Q4 profit though revenue declined.
- China Petroleum & Chemical Corp. posted a record Q2 profit after restrictions on fuel prices were lifted.
- Dell Inc. (NASDAQ: DELL) said its Q2 earnings declined, but they still topped analysts' expectations.
Barnes & Noble struggles with comps in the second quarter
Barnes & Noble, Inc. (NYSE: BKS), a bookseller that competes with Amazon.com, Inc. (NASDAQ: AMZN), Wal-Mart Stores, Inc. (NYSE: WMT), and Borders Group, Inc. (NYSE: BGP), issued a Q2 earnings report on Thursday morning that in no way makes me want to invest in the company. As far as I'm concerned, the retailer has a lot of work to do, and I wouldn't want to involve my portfolio with a business that is still trying to find its way.
Barnes & Noble earned 14 cents per share on an adjusted basis. Earnings.com reports an expectation of 10 cents per share. So management went beyond projections. Should shareholders be content with such news and call it a day?
Continue reading Barnes & Noble struggles with comps in the second quarter
Borders, Barnes & Noble need you to kill your television
Twilight and Harry Potter sales notwithstanding, there's a growing reality in our fair nation -- people just don't read like they used to. And with the slowdown in reading comes a definite decline in book sales.
The Book Industry Study Group reported that publishers sold fewer books in 2008, down 1.5% from 2007 to 3.08 billion. Of course, all was not lost -- total revenue edged 1% higher thanks to increased prices.
Continue reading Borders, Barnes & Noble need you to kill your television
Earnings highlights: Research in Motion, Monsanto, Apollo Group, Borders and more
Here are some highlights from this past week's earnings coverage from BloggingStocks:
- American Electric Power Co. Inc. (NYSE: AEP) lowered its earnings forecast for fiscal 2009.
- Apollo Group Inc. (NASDAQ: APOL) reported better-than-expected Q2 earnings and strong revenue growth.
- Borders Group Inc. (NYSE: BGP) reported better-than-expected Q4 earnings despite a decline in sales.
- CarMax Inc. (NYSE: KMX) soaring earnings beat Q4 expectations despite a decline in revenue.
- Colgate-Palmolive Co. (NYSE: CL) was downgraded on risk to its earnings from currency issues.
Continue reading Earnings highlights: Research in Motion, Monsanto, Apollo Group, Borders and more
Borders stays afloat with loan extension
After rounds of layoffs and cost-cutting, Borders Group (NYSE: BGP) is struggling for survival against a large debt load and declining fundamentals.But the company got a stay of execution yesterday when it announced that its $42.5 million loan agreement with William Ackman's Pershing Square Capital Management had been extended for another year. One explanation for Ackman's lenience is his status as the company's largest shareholder in addition to being a major creditor.
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