So, Borders.
Last week, it posted its 2nd quarter results, and even though they were able to trim its net loss, couldn’t counter the soft retail environment and posted a decline in revenue in the period.
And while the company sold its Australia/New Zealand/Singapore business, it applied the proceeds to help cut its debt, which was reduced to $465.7 million compared to $738.4 million a year ago. Total sales, however, fell 6.9%, to $749.2 million.
There is not much hope that the Christmas season will help, as our economy continues to suffer. With high gas prices (though down) and the mortgage mess still on the lips of news casts, this shopping season could be worse than last year's.
While the company has operating capital to get them through the fourth quarter, which ends in February 2009, I expect the company to file bankruptcy protection. Which could be a good thing, really, as it would enable them to excise certain under performing stores which are stuck in terrible leases. It could renegotiate its debt and come out a small, yet leaner company.
Plus, I expect a change of CEO.
With its debt, don't expect Barnes & Noble to buy them, though they could obtain stores that Borders abandons after the bankruptcy.
Last week, it posted its 2nd quarter results, and even though they were able to trim its net loss, couldn’t counter the soft retail environment and posted a decline in revenue in the period.
And while the company sold its Australia/New Zealand/Singapore business, it applied the proceeds to help cut its debt, which was reduced to $465.7 million compared to $738.4 million a year ago. Total sales, however, fell 6.9%, to $749.2 million.
There is not much hope that the Christmas season will help, as our economy continues to suffer. With high gas prices (though down) and the mortgage mess still on the lips of news casts, this shopping season could be worse than last year's.
While the company has operating capital to get them through the fourth quarter, which ends in February 2009, I expect the company to file bankruptcy protection. Which could be a good thing, really, as it would enable them to excise certain under performing stores which are stuck in terrible leases. It could renegotiate its debt and come out a small, yet leaner company.
Plus, I expect a change of CEO.
With its debt, don't expect Barnes & Noble to buy them, though they could obtain stores that Borders abandons after the bankruptcy.
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