Borders Meets with Publishers Over Terms
>Hopefully, this will help the beleaguered bookstore.
Ahead of a conference call set for Friday afternoon to give vendors an update on its business plan and restructuring, Borders merchandise executive have been in New York this week negotiating with publishers to resume direct shipments to the embattled chain. At present, Ingram is doing most of the shipping with publishers only shipping on a cash basis. According to sources, Borders is asking for cash in advance terms for a month with more regular terms afterwards. One sticking point could be returns. In the months leading up to the filing, Borders was buying and returning in quick succession. One major publisher was hopeful that his company may reach a shipping agreement with Borders before the end of the week.
On Wednesday, representatives from Simon & Schuster and Hachette attended the Creditor’s Committee meeting as members but in a nonvoting capacity. Both houses are among Borders’s top 30 creditors and participated in the bookseller’s unofficial creditor meetings pre-bankruptcy, but were left off the official committee and were reported to be very unhappy about the snub. The committee includes representatives from Penguin, HarperCollins, Random House, and Perseus Books Group on the publishing side. Sony Music, GGP Limited Partnership and the Simon Property Group are also included on the committee.
Borders CEO Mike Edwards and CFO Scott Henry will host the 2 p.m. conference call that can be heard by calling 877-262-1046.
Borders’s woes continue to mount with yesterday afternoon’s announcement from the New York Stock Exchange that it will delist Borders’s stock at the opening of business on March 21. The average closing price for the company’s stock has been less than a dollar for more than a consecutive 30 trading day period.