FINANCE

Borders faces Thursday deadline on credit facility from Pershing Square

BY CSA STAFF

New York City Borders Group Inc., faces a deadline Thursday to repay a $42.5 million loan from its largest investor, William Ackman’s investment firm Pershing Square, the Associated Press said.

Pershing Square holds an 18% stake in Borders.

Borders hasn’t reported results for its fiscal fourth quarter, which ended Jan. 31. But it posted losses for each of the three previous quarters as its revenue fell. And it said in January that same-store holiday sales at Borders Superstores fell 14.6%. 

The credit facility’s due date has been extended three times and could be extended again.

Borders said in a December regulatory filing that it had about $32.8 million in cash as of Oct. 31.

If Borders doesn’t get another extension from Pershing Square and can’t repay the $42.5 million or find financing from another source, it could sell a stake to another investor, according to the report.

Other options include filing for bankruptcy court protection, liquidating or selling itself whole, said analyst Michael Norris with Simba Information in the report.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
News

Books-A-Million offering special deals for educators

BY CSA STAFF

BIRMINGHAM, Ala. Books-A-Million announced that all Books-A-Million stores will be hosting Educators’ Day on Saturday, April 17. The Books-A-Million Educators’ Day will be a special day for educators with extra savings, exclusive offers and prizes and free food and beverages. the company reported.

In addition, Books-A-Million announced that from April 17 through April 23, educators will also receive 25% off their classroom purchases with their Books-A-Million Educator Discount Card.

 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
News

Cost Plus improves comps, earnings

BY CSA STAFF

OAKLAND, Calif. Cost Plus reported that net sales for the fourth quarter ended Jan. 30 were $320 million, a 4.6% decrease from the $335.4 million in net sales for the fourth quarter ended Jan. 31, 2009. Same-store sales for the fourth quarter decreased 2.5% compared with a 6.1% decrease last year.

Net sales for fiscal 2009 were $869.5 million, an 8.6% decrease from $950.9 million in fiscal 2008. For fiscal 2009, same-store sales decreased 7.1% driven by a reduction in the average ticket, the company reported.

 

Barry Feld, president and CEO commented, “We are pleased with the return to profitability in our most important quarter. The company’s core competency in unique and affordable seasonal gift-giving and entertaining products, augmented with a new customer acquisition campaign, reversed the negative trend in customer count and drove significantly more profitable sales in the quarter than a year ago.”

 

Net income on a GAAP basis for the fourth quarter of fiscal 2009 was $21.1 million or 95 cents per diluted share versus a loss of $18.3 million or 83 cents per diluted share for the fourth quarter of fiscal 2008. Net loss for fiscal 2009 was $63.3 million or $2.87 per diluted share compared with a net loss of $102.7 million or $4.65 per diluted share last year.

 

For the first quarter of fiscal 2010, the company expects net sales in the range of $185 million to $188 million, based on a same-store sales increase in the range of 3% to 5%.

 

For the first quarter of fiscal 2010, the company is projecting a loss from continuing operations before interest and taxes in the range of $11 million to $13 million versus a loss of $22.3 million for the first quarter of fiscal 2009.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...