Bad news first: Amazon is laying off, and Borders is – wait, Borders is still around? Not for long, it appears.
With Borders set to declare fourth-quarter results next week, expectations are grim: more multi-million dollar losses, store closures, payroll slashings and, with shares currently trading at 64 cents per share, potential de-listing from the NYSE. Shareholders will hear more about the company's strategy, including plans for a reverse stock split to satisfy NYSE conditions, next Wednesday when CEO Ron Marshall hosts a conference call with analysts and investors.
One turnaround expert tells the Detroit Free Press that Borders seems to be one of buying time and hoping economic recovery is just around the corner. "They are figuring their brand name is going to carry them," said Ken Dalto ."Brand names mean less with the inroads of technology. The brand name is Amazon." Managing partner of Bingham Farms-based McTevia Associations Jim McTevia points to a possible Chapter 11 filing, but says even that wouldn't solve Borders' problems. "Depending on their ability to get debtor-in-possession financing, they could easily file for Chapter 11," he said. "It is much easier to facilitate the sale of a troubled company under bankruptcy protection."
Ready for some good news? Or at least some not-horrific news?
Samsung gets into the e-reader business with their new Papyrus. Comes with a touch-screen, and the price point will be lower than either the Kindle or the Sony E-reader.
You know, it's interesting. I'd thought that one brand of e-reader would rise above the rest (think: Ipod) and the other brands would either disappear or become the mark of irredeemable dorkhood (think: Zune). But is it possible there will be many, many e-readers, just as there are many brands of DVD player? I'll admit that I don't know if all these devices operate on the same tech platform, but if they're all compatible, I have to think that competition will be good for innovation and price-squashing.
And finally, something I'm not sure how to explain: In times of trouble, writing workshops flourish.
Friday, March 27, 2009
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