Cabela’s expands credit facility
Sidney, Neb. – Cabela’s Inc. has signed an amended credit facility with a consortium of financial institutions led by U.S. Bank. This $775 million, five-year credit facility expands and extends Cabela’s existing $415 million, five-year agreement signed in 2011.
In addition, the facility may be increased to $800 million subject to certain terms and conditions.
“The amended facility provides us with long-term financing flexibility as we continue to expand our retail store footprint, increase brand loyalty through the operations of Cabela’s Club, focus on our omnichannel strategy and increase our market share,” said Tommy Miller, CEO of Cabela’s.
New Sears Home Appliance Showroom opens in Colorado June 26
Hoffman Estates, Ill. – Sears Hometown and Outlet Stores Inc. will open its newest Colorado Sears Home Appliance Showroom on June 26, in Arvada. The Arvada location marks the fourth opening of a new Sears Home Appliance Showroom Store this year and the 14th opening of a new store across all of Sears Hometown and Outlet Stores formats.
Through the company’s price-match policy, the Arvada Sears Home Appliance Showroom guarantees the lowest price on the top appliance brands, and is equipped with an Internet kiosk where customers are guided by sales staff to view similar products, price match with other retailers, and order products not available in the store.
Barnes & Noble to spin off Nook business; misses on loss
New York – Barnes & Noble Inc. plans to spin off its Nook e-reader unit as a separately traded public company from its retail operation by the end of the first quarter of fiscal 2016. The retailer made this decision as its consolidated net loss for the fourth quarter of fiscal 2014 shrank from $114.8 million to $36.7 million, missing Wall Street estimates.
“We have determined that these businesses will have the best chance of optimizing shareholder value if they are capitalized and operated separately,” said Michael P. Huseby, Barnes & Noble’s CEO. “We fully expect that our retail and Nook Media businesses will continue to have long-term, successful business relationships with each other after separation.”
During the fourth quarter, Barnes & Noble reported a 3.5% year-over-year increase in revenue to $1.32 billion, from $1.28 billion. However, revenue in the Nook segment declined 22.3% while revenue in the retail and college segments grew, likely influencing the decision to spin off Nook. Nook sales in the fourth quarter only totaled $25 million. Same-store sales dropped 4.1%, with negative impact from declining same-store Nook sales.
For the fiscal year, net loss dropped to $47.3 million from $153.8 million. Sales dropped 7% to $6.38 billion from $6.84 billion. Same-store sales dropped 5.8%. Barnes & Noble expects continued declining same-store sales during fiscal 2015.
Barnes & Noble has engaged Guggenheim Securities LLC as financial advisers and Cravath, Swaine & Moore LLP as legal counsel for its Nook spinoff. The company said it cannot guarantee the separation will occur by the stated deadline and that customary conditions and approvals will apply.