Borders closing 200 stores
03-16-11, 01:57 AM
#76
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Re: Borders closing 200 stores
I was debating on going to the Nashua store in a few days, but it's 2 almost 2 hours away. Have they lowered the markdowns yet? Is there anything left at these stores at this point?
03-16-11, 12:55 PM
#77
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Re: Borders closing 200 stores
03-17-11, 02:49 AM
#78
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Re: Borders closing 200 stores
I'm watching the bonus features on The Walking Dead, and Steven Yuen said he read vols 1 and 2 sitting in Borders without buying them 
03-18-11, 08:33 PM
#80
DVD Talk Legend
Re: Borders closing 200 stores
It looks like Borders is closing an additional 28 stores. Here is the updated list:
Chapter 11 Store Closure List
Chapter 11 Store Closure List
03-18-11, 08:43 PM
#81
DVD Talk Limited Edition
Re: Borders closing 200 stores
You were right about the super-high rent being an impediment to their recovery. I'm sure some pricey fashion chain will move in there and do gangbusters.
03-18-11, 09:21 PM
#82
DVD Talk Legend
Re: Borders closing 200 stores
It looks like Borders is closing an additional 28 stores. Here is the updated list:
Chapter 11 Store Closure List
Chapter 11 Store Closure List
I hope the only other big book store in the area (Barnes and Noble) enjoys all the freeloaders thrashing up their store now
03-19-11, 12:17 AM
#83
DVD Talk Limited Edition
Re: Borders closing 200 stores
B&N Pines For A Storybook Ending
By MARTIN PEERS
It's never fun to realize, after starting a book, that the plot is so familiar it loses any element of surprise. The question for Barnes & Noble shareholders is whether they are living such a predictable tale.
The stock's 47% plunge in the past three weeks, to below $10, its lowest point since the early 1990s, suggests investors feel that way. Last month's suspension of the dividend, to preserve cash for digital investments, likely sent income-oriented investors heading for the exits. But despite Barnes & Noble's claim to be "now a growth company," growth investors appear to be staying away—with good reason.
Over the past decade, the transition of music, movies and books from physical products to online digital versions has devastated specialist bricks-and-mortar retailers. Investors may have forgotten bankrupt music retailers like Musicland, but bankruptcies of video chains Blockbuster and Movie Gallery are much more recent, as is the Chapter 11 filing of Borders Group.
Admittedly, Barnes & Noble has more chance of surviving. It has established a foothold in digital-media distribution by developing its own e-reading device, the Nook, to compete with Amazon's Kindle and Apple's iPad. Company executives say they have already captured 25% of the ebook market, more than the company claims to have in physical books.
Even so, there are plenty of uncertainties. What will happen to Barnes & Noble's bottom line as the book market shifts to digital? Its gross margin will likely decline. The company has said it makes 20%-plus on ebooks, against 30% for physical books sold in stores and 27% gross margins for those sold online. Of course, it will more than make up for that with operating savings: The costs of running its brick-and-mortar stores are much higher than expenses on the ebook side.
Still, Barnes & Noble will only get the full benefit of those operating savings if it closes stores entirely as foot traffic drops. So far, Barnes & Noble has held off on aggressive store closures, hoping to pick up business as rivals close. It is devoting shelf space to toys and games, although there are competitors in those areas. The worry is the company will be too slow to close outlets.
It doesn't help that Barnes & Noble has taken on long-term debt for the first time in several years, partly to fund the $596 million cash buyout in 2009 of the Barnes & Noble college-store chain from Len Riggio, chairman and 30% shareholder. The price paid was more than Barnes & Noble's now-shrunken market capitalization. While the college chain's earnings have proved valuable as Barnes & Noble invests in digital, its sales at stores open more than a year have declined since the purchase. The deal would have looked better for Barnes & Noble shareholders if Mr. Riggio had taken stock rather than cash.
The next chapter of Barnes & Noble's story is only just beginning. But investors may want to stop reading here.
By MARTIN PEERS
It's never fun to realize, after starting a book, that the plot is so familiar it loses any element of surprise. The question for Barnes & Noble shareholders is whether they are living such a predictable tale.
The stock's 47% plunge in the past three weeks, to below $10, its lowest point since the early 1990s, suggests investors feel that way. Last month's suspension of the dividend, to preserve cash for digital investments, likely sent income-oriented investors heading for the exits. But despite Barnes & Noble's claim to be "now a growth company," growth investors appear to be staying away—with good reason.
Over the past decade, the transition of music, movies and books from physical products to online digital versions has devastated specialist bricks-and-mortar retailers. Investors may have forgotten bankrupt music retailers like Musicland, but bankruptcies of video chains Blockbuster and Movie Gallery are much more recent, as is the Chapter 11 filing of Borders Group.
Admittedly, Barnes & Noble has more chance of surviving. It has established a foothold in digital-media distribution by developing its own e-reading device, the Nook, to compete with Amazon's Kindle and Apple's iPad. Company executives say they have already captured 25% of the ebook market, more than the company claims to have in physical books.
Even so, there are plenty of uncertainties. What will happen to Barnes & Noble's bottom line as the book market shifts to digital? Its gross margin will likely decline. The company has said it makes 20%-plus on ebooks, against 30% for physical books sold in stores and 27% gross margins for those sold online. Of course, it will more than make up for that with operating savings: The costs of running its brick-and-mortar stores are much higher than expenses on the ebook side.
Still, Barnes & Noble will only get the full benefit of those operating savings if it closes stores entirely as foot traffic drops. So far, Barnes & Noble has held off on aggressive store closures, hoping to pick up business as rivals close. It is devoting shelf space to toys and games, although there are competitors in those areas. The worry is the company will be too slow to close outlets.
It doesn't help that Barnes & Noble has taken on long-term debt for the first time in several years, partly to fund the $596 million cash buyout in 2009 of the Barnes & Noble college-store chain from Len Riggio, chairman and 30% shareholder. The price paid was more than Barnes & Noble's now-shrunken market capitalization. While the college chain's earnings have proved valuable as Barnes & Noble invests in digital, its sales at stores open more than a year have declined since the purchase. The deal would have looked better for Barnes & Noble shareholders if Mr. Riggio had taken stock rather than cash.
The next chapter of Barnes & Noble's story is only just beginning. But investors may want to stop reading here.
WSJ Article
Last edited by BuckNaked2k; 03-19-11 at 12:25 AM.
03-19-11, 09:28 AM
#84
DVD Talk Legend
Re: Borders closing 200 stores
Interesting. Thanks for posting that.
I think with Borders doing so terrible for the last couple years, it gives the impression that B&N is doing that much better. I guess not?
Lack of foot traffic is killing these stores. That or there is foot traffic, but 90% of customers are lounging around and not buying anything.
I think with Borders doing so terrible for the last couple years, it gives the impression that B&N is doing that much better. I guess not?
Lack of foot traffic is killing these stores. That or there is foot traffic, but 90% of customers are lounging around and not buying anything.
03-20-11, 01:12 AM
#85
DVD Talk Special Edition
Re: Borders closing 200 stores
One thing B&N has that Borders doesn't: Criterion sales. Or just more DVD sales in general. Feel free to tell me if I'm wrong, but my perception is that B&N stores have more incentive for DVD/BD shoppers than Borders.
Not to mention their media section is segregated from the rest of the store, so freeloaders can't really sample CDs with their coffee (do those 30-60 second song samples even count as "freeloading"?).
As for the "book wars", well *shrugs*... I have to order 99% of my books online, the brick-and-mortar stores don't carry these small publications and I'm not into special ordering. And if they *do* carry them, they're usually at full retail price. You don't really see specified sales by book publisher, no "50% off Library of America books". (LOA's retail price is pretty similar to Criterion's)
UPDATE:
Holy shit, it looks like they're exterminating Borders from the entire metro Phoenix area! I shopped there very infrequently, but the Scottsdale/101 location is the only place where a cute female employee complimented my Celtic Frost shirt.
Not to mention their media section is segregated from the rest of the store, so freeloaders can't really sample CDs with their coffee (do those 30-60 second song samples even count as "freeloading"?).
As for the "book wars", well *shrugs*... I have to order 99% of my books online, the brick-and-mortar stores don't carry these small publications and I'm not into special ordering. And if they *do* carry them, they're usually at full retail price. You don't really see specified sales by book publisher, no "50% off Library of America books". (LOA's retail price is pretty similar to Criterion's)
UPDATE:
It looks like Borders is closing an additional 28 stores. Here is the updated list:
Chapter 11 Store Closure List
Chapter 11 Store Closure List
Last edited by Living Deadpan; 03-20-11 at 01:19 AM. Reason: adding updated content
03-20-11, 11:08 PM
#86
DVD Talk Legend
Re: Borders closing 200 stores
Also, I think at the store level, the way the stores look have done a lot to hurt/help both stores.
If I had to think like a potential customer, B&N has a very clean and slick look while Borders usually has a cluttered, but cozy feel.
Cozy feel encourages you to sit around and treat things like home/library if you ask me.
If I had to think like a potential customer, B&N has a very clean and slick look while Borders usually has a cluttered, but cozy feel.
Cozy feel encourages you to sit around and treat things like home/library if you ask me.
03-25-11, 04:16 PM
#87
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Re: Borders closing 200 stores
http://www.bloomberg.com/news/2011-0...n-bonuses.html
Borders, in Bankruptcy, Plans to Pay $8.3 Million in Bonuses
By Linda Sandler and Tiffany Kary - Mar 25, 2011 10:31 AM PT
Borders Group Inc. (BGP), after filing for bankruptcy in February with plans to close about a third of its stores, said it plans to pay key employees as much as $8.3 million in incentives and retention bonuses.
The second-biggest U.S. bookstore chain asked a judge to approve its plan in a filing yesterday in U.S. Bankruptcy Court in New York, saying it historically compensated employees through incentives.
The main awards would be part of a program budgeted for as much as $7.1 million. The size would be calculated after the company files a reorganization plan or gets approval for a sale of the company, Borders said. The rest of the money is budgeted for retention bonuses, it said.
Under the incentive program, Borders President Michael Edwards, chief executive officer of the chain’s parent company, Borders Inc., would get as much as $1.7 million in bonuses, according to the filing. “Award opportunities” under the plan would be 150 percent of historical levels for the company’s incentives, it said.
Employees would get no incentive payments if Borders was liquidated, it said. Nor will they get a bonus for 2010, “due to the debtors’ declining financial performance,” it said.
Borders filed for Chapter 11 protection after management changes, job cuts and debt restructuring failed to make up for sagging book sales in the face of competition from Amazon.com Inc. (AMZN) and Wal-Mart Stores Inc. (WMT)
The company made an emergency request to close at least 200 of its 642 stores and said this month it would close more. The stores are under the Borders, Waldenbooks, Borders Express and Borders Outlet names in the U.S. and Puerto Rico.
The case is In re Borders Group Inc., 11-10614, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
By Linda Sandler and Tiffany Kary - Mar 25, 2011 10:31 AM PT
Borders Group Inc. (BGP), after filing for bankruptcy in February with plans to close about a third of its stores, said it plans to pay key employees as much as $8.3 million in incentives and retention bonuses.
The second-biggest U.S. bookstore chain asked a judge to approve its plan in a filing yesterday in U.S. Bankruptcy Court in New York, saying it historically compensated employees through incentives.
The main awards would be part of a program budgeted for as much as $7.1 million. The size would be calculated after the company files a reorganization plan or gets approval for a sale of the company, Borders said. The rest of the money is budgeted for retention bonuses, it said.
Under the incentive program, Borders President Michael Edwards, chief executive officer of the chain’s parent company, Borders Inc., would get as much as $1.7 million in bonuses, according to the filing. “Award opportunities” under the plan would be 150 percent of historical levels for the company’s incentives, it said.
Employees would get no incentive payments if Borders was liquidated, it said. Nor will they get a bonus for 2010, “due to the debtors’ declining financial performance,” it said.
Borders filed for Chapter 11 protection after management changes, job cuts and debt restructuring failed to make up for sagging book sales in the face of competition from Amazon.com Inc. (AMZN) and Wal-Mart Stores Inc. (WMT)
The company made an emergency request to close at least 200 of its 642 stores and said this month it would close more. The stores are under the Borders, Waldenbooks, Borders Express and Borders Outlet names in the U.S. and Puerto Rico.
The case is In re Borders Group Inc., 11-10614, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
03-27-11, 01:32 AM
#90
DVD Talk Special Edition
Re: Borders closing 200 stores
Borders filed for Chapter 11 protection after management changes, job cuts and debt restructuring failed to make up for sagging book sales in the face of competition from Amazon.com Inc. (AMZN) and Wal-Mart Stores Inc. (WMT)
03-28-11, 06:44 PM
#91
DVD Talk Legend
Re: Borders closing 200 stores
I think that's fair to say E-Tailers like Amazon and Discount/Variety Stores like Walmart/Costco/Target were more of a threat to the company than B&N.
At the store level, minus memberships or coupons, both Borders & B&N were selling most of their items at MSRP.
Where Amazon, Target and Costco would all have say the same Hardcover/Bestseller for much cheaper.
At the store level, minus memberships or coupons, both Borders & B&N were selling most of their items at MSRP.
Where Amazon, Target and Costco would all have say the same Hardcover/Bestseller for much cheaper.
03-29-11, 12:38 AM
#92
Moderator
Re: Borders closing 200 stores
I went to the Borders store closing sale at the Ridgedale Mall in the twin cities. Everything was 50%-70% off and I still only bought three books that happened to be $1-$2 cheaper than on Amazon's regular price.
Hmm, wonder why they went out of business...
Hmm, wonder why they went out of business...
03-29-11, 12:49 AM
#93
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Re: Borders closing 200 stores
They went out of business because they had the business model of a library.
Will check out the Austin store on my day off... 2 weeks ago they were still at 30% off for most items.
Will check out the Austin store on my day off... 2 weeks ago they were still at 30% off for most items.
03-29-11, 05:36 AM
#94
DVD Talk Legend
Re: Borders closing 200 stores
Also throw in that most customers at these closing stores were turning their local Borders into their own personal library/den.
03-29-11, 06:35 AM
#95
DVD Talk Special Edition
Re: Borders closing 200 stores
Well I made my one stop to a Borders closeout. Most stuff only 40% off, but I guess I got pretty lucky finding the OOP Dracula Prince of Darkness/Satanic Rites of Dracula DVD ($12 after discount).
I've noticed that companies tend to make dumbass decisions before they end up doing massive store closeouts, and I thought it was pretty dumbass how Borders.com raised the free shipping threshold from $25 to $40 of purchases. It's like they think profit at the exclusion of competitive pricing.
Would it be an accurate analogy to say that:
-B&N is to Borders -what- Best Buy is to Circuit City?
I've noticed that companies tend to make dumbass decisions before they end up doing massive store closeouts, and I thought it was pretty dumbass how Borders.com raised the free shipping threshold from $25 to $40 of purchases. It's like they think profit at the exclusion of competitive pricing.
Would it be an accurate analogy to say that:
-B&N is to Borders -what- Best Buy is to Circuit City?
04-02-11, 02:15 AM
#96
DVD Talk Ultimate Edition
Re: Borders closing 200 stores
Stopped into the Chino Hills, CA, Borders and all books were 50-60% off. Some pretty great deals, especially if you're a teacher, like me. Passed on most as I have a huge backlog already, but most titles I picked up beat Amazon prices by a few bucks, at least. Worth checking out if you're a reader.
Blu rays? FORGET ABOUT IT. Decent selection, but even at 50% off list the titles were still a few dollars more than Amazon.
Blu rays? FORGET ABOUT IT. Decent selection, but even at 50% off list the titles were still a few dollars more than Amazon.
04-02-11, 08:35 AM
#97
DVD Talk Gold Edition
Re: Borders closing 200 stores
Stopped into the Chino Hills, CA, Borders and all books were 50-60% off. Some pretty great deals, especially if you're a teacher, like me. Passed on most as I have a huge backlog already, but most titles I picked up beat Amazon prices by a few bucks, at least. Worth checking out if you're a reader.
Blu rays? FORGET ABOUT IT. Decent selection, but even at 50% off list the titles were still a few dollars more than Amazon.
Blu rays? FORGET ABOUT IT. Decent selection, but even at 50% off list the titles were still a few dollars more than Amazon.
I would have picked up more books myself, but pretty much anything that seemed to grab my attention was beat to hell, or covers torn, etc. And despite the prices, I still like my stuff to look nice.
04-02-11, 05:57 PM
#98
DVD Talk Ultimate Edition
Re: Borders closing 200 stores
A head's up for anyone in OC. The Borders at the Block has 80-90% markdowns on remaining stock with only a day or two left, I think.
Slim pickings, obviously, but for the interested, there were a few Blu-rays left, including Man With the Golden Gun ($7.04 after the discount), Jennifer's Body, Heroes Season 2, The Man Who Stared at Goats, Revolve and a couple others with $34.99 list prices. Passed on all.
Did find two books at 80% of that have been on my Amazon wish list for awhile, so well worth the trip for me.
Slim pickings, obviously, but for the interested, there were a few Blu-rays left, including Man With the Golden Gun ($7.04 after the discount), Jennifer's Body, Heroes Season 2, The Man Who Stared at Goats, Revolve and a couple others with $34.99 list prices. Passed on all.
Did find two books at 80% of that have been on my Amazon wish list for awhile, so well worth the trip for me.
04-02-11, 07:36 PM
#99
DVD Talk Hall of Fame
Re: Borders closing 200 stores
My wife and I stopped at two Indy stores today. Downtown is at 90% off everything and had one Blu left, Stan Helsing. The Carmel store probably had around 100 Blus left at 70% off. We picked up Darkman and Romeo & Juliet for around $6 and $10, respectively. Also snagged a bunch of books cheap, so it was worth the trip, but pretty slim pickings overall.
04-04-11, 10:18 AM
#100
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Re: Borders closing 200 stores
http://ereads.com/2011/04/borders-ha...ast-laugh.html
A closing Borders Bookstore in Chicago hung this sign in their window.
A closing Borders Bookstore in Chicago hung this sign in their window.