As I mentioned yesterday, Borders issued a statement saying that it is continuing to review its “strategic options.” And thus, no new deals were close. I guess with the rumor mill spinning faster and faster, Borders had to say something, even if it was nothing.
Meanwhile, on the store level, the perks -always a sign of trouble - are vanishing faster than a republican caught at a porn convention. Borders has dropped two things just this week: paying time and half for the holidays (like this up coming Memorial Day) and suspending the free coffee and tea employees got.
The recent email about the coffee/tea suspension was headlined with “Let’s keep this positive.” Yep, they know it sucks, but let’s be positive (add 150,000 explanation points to that). I wonder how they expect the staff to be, as morale has sunken to an all time low. And what do they do about it, send their DM’s and talk about the numbers, the all important numbers. Like how sales are down, and even though the bulk can be explained by the “recession,” there is always the subtle emphasis that it’s also the employee’s fault.
How do you sell to people pinched by high gas prices, food prices and a housing market that is having a major stroke and a heart attack? Plus, with no Harry Potter this summer, there is no need-to-have book to drive customers into the stores. And we have to wait until August for Stephanie Myers final book in her Twilight vampire series.
Where does, in the end, Borders go from here?
I doubt at this time that Barnes and Noble will want to merge with Borders, if mostly because of the high debt. That is why no one will buy them. The $500 million is like poison.
Also, too, if they file for bankruptcy, it could help make the company become leaner (by getting out of those long-term leases/rents to close under performing stores, and then they would be in a better play to renegotiate the debt), and refocus on what made it good a long time ago, carrying a variety of books and meshing with the community to make sure they have an incredible atmosphere for your customers.
Still, Borders still has some good brand recognition, and had they not gotten in bed with Pershing and William Ackman, they probably could’ve gotten through 2008 with the improvements they’ve been doing. With Ackman broadcasting Borders problems, they’ll have a tougher time trying to find investors.
The company is going to have a rough year, and I expect further cuts at the store level -though I’m unsure how much more they can strip away, because since they love numbers, once they see the CSI scores drop and see the impractical, and very flawed, balanced score card numbers take a nose dive, I don’t know how we can do better.
Meanwhile, on the store level, the perks -always a sign of trouble - are vanishing faster than a republican caught at a porn convention. Borders has dropped two things just this week: paying time and half for the holidays (like this up coming Memorial Day) and suspending the free coffee and tea employees got.
The recent email about the coffee/tea suspension was headlined with “Let’s keep this positive.” Yep, they know it sucks, but let’s be positive (add 150,000 explanation points to that). I wonder how they expect the staff to be, as morale has sunken to an all time low. And what do they do about it, send their DM’s and talk about the numbers, the all important numbers. Like how sales are down, and even though the bulk can be explained by the “recession,” there is always the subtle emphasis that it’s also the employee’s fault.
How do you sell to people pinched by high gas prices, food prices and a housing market that is having a major stroke and a heart attack? Plus, with no Harry Potter this summer, there is no need-to-have book to drive customers into the stores. And we have to wait until August for Stephanie Myers final book in her Twilight vampire series.
Where does, in the end, Borders go from here?
I doubt at this time that Barnes and Noble will want to merge with Borders, if mostly because of the high debt. That is why no one will buy them. The $500 million is like poison.
Then, of course, there’s the whole antitrust thingy. Really, the only way it could work, would to wait until Borders declares bankruptcy -which I’m sure William Ackman and Pershing Square Capital probably would not like. Only then could B&N take over Borders, due to the flexibility provided by the courts.
Also, too, if they file for bankruptcy, it could help make the company become leaner (by getting out of those long-term leases/rents to close under performing stores, and then they would be in a better play to renegotiate the debt), and refocus on what made it good a long time ago, carrying a variety of books and meshing with the community to make sure they have an incredible atmosphere for your customers.
Still, Borders still has some good brand recognition, and had they not gotten in bed with Pershing and William Ackman, they probably could’ve gotten through 2008 with the improvements they’ve been doing. With Ackman broadcasting Borders problems, they’ll have a tougher time trying to find investors.
The company is going to have a rough year, and I expect further cuts at the store level -though I’m unsure how much more they can strip away, because since they love numbers, once they see the CSI scores drop and see the impractical, and very flawed, balanced score card numbers take a nose dive, I don’t know how we can do better.
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