Borders stalls book payments, doubts survival in e-book era

Electronista ^ | December 31, 2010

[Swordmaker]

Borders delays book payments in financial deals

Borders has been delaying payments to book publishers in signs that it may be one of the first major victims of e-books. Early reports from Publishers Marketplace on Friday said it was putting off the payments to help refinance its debt but also wasn't certain that the plan would be effective. It might have to break its existing credit deals early into 2011 after facing a "liquidity shortfall," it said.

The publishers weren't named by Borders when asked by the Wall Street Journal, but Hachette and Sourcebooks were named as two of those told they weren't getting payments due as soon as today.

Financial pressure has now become acute at the company and mimics that of Circuit City before it was defunct. The electronics chain's problems with sales were reinforced when it engendered a lack of faith from device makers, many of whom began insisting on cash up front and didn't trust credit from the chain. Borders lost $74.4 million just in its most recent quarter and has lost money in most every quarter for the past two years except for the holiday season, when the usual spike put it back temporarily into profits.

E-books have been credited in part to the damage done to Borders and even more successful stores like Barnes & Noble, where digital downloads are mostly replacing paper copies rather than adding to the business. Borders has been exploring the possibility of financing from an investor to buy Barnes & Noble and get a successful business through a takeover.

Any financial collapse at Borders could have a ripple effect on the e-book business. It would cost Kobo one of its most important markets for e-readers and would close one of the few major online book stores. The shift could feed Amazon, Apple and other survivors with extra customers.

[Diana in Wisconsin]

I agree. I’ll look for my rye flour at the local Feed Mill.

If it’s good enough for the local hogs, it’s good enough for my table. And some of those hogs end up on my table, anyway, LOL!

[RFEngineer]

“I will swear on a stack of Gutenberg Bibles that I will never do it! :)”

Don’t swear on it, Just say you are sticking with your low-power persistent papyrus high-resolution displays for now.

That way nobody gets to tease you later when you become an annoying kindle user like I’ve become.

[PrincessB]

Interestingly, the first recommendation I got for a Kindle (loving mine) was from some one who bought it for her mother. She and her sisters take turns downloading mom’s reading list. Their mother nearly gave up on reading and this has been a blessing. She can adjust the font and some of the books have a voice reader that she can play when she gets tired to help her read along.

[Texas Fossil]

Searchable HTML version of the Federalist Papers:

http://www.gutenberg.org/files/1404/1404-h/1404-h.htm

[Little Bill]

I’ll look for my rye flour at the local Feed Mill.

Not a bad idea, remember what many of our ancestors ate as bread would be animal food today. A fellow FReeper wanted a recipe for Lithuanian Black Rye Bread, I got a bunch of Recipes so here is what you need; Flour, Water, Salt, and old bread.

The problem is takes a week to make a starter and you need a lot because Rye has a low gluten content. The old Bread starts next weeks bread.

[Mr Rogers]

My wife wants to covert our garage and the bedroom above it into a two story library. I'd love to, and to have the money to buy the books to stock it!

Tried Kindle...no way. A good book deserves hardback treatment, and the feel of the pages as you progress. And of course, there are books that deserve more:

[hinckley buzzard]

Borders is a stink-hole for latte-drinking liberals who browse endlessly but don’t buy books. As a result Borders stock is down to about 90 cents. Serves them right for trying to make money off the deadbeat leftwingers. Liberal churches are going broke for the same reason—liberals live off other people’s money, not their own.

[FelixFelicis]

>>...reading a new novel every few days. He never buys them.<<

LOL! You just described my dad in the broke, bummy days of his youth (minus the fat ass). All you have to do is mention a book that’s more than 30 years old and he almost never fails to say, “I read that in a bookstore.” Well, at least he was reading and not off smoking pot somewhere.

[Mr Rogers]

The HECK with all these new fangeled inventions. Makes me long for the good ole days:

[Salamander]

Maybe I should quote that to the regional manager next time I’m in and ask if he thinks saying “That was easy!” all day long sounds like a spiffy career upgrade.

[Billthedrill]

Oh, sure. That dang Gutenberg guy and his trashy best-sellers...

[Salamander]

This is a well dressed middle aged guy who looks like he could afford more books than I can.

[but there are some really scroungy characters loafing around, reading “graphic novels”]

[ken21]

everything you’ve said, i’ve observed also.

yes, i buy exclusively from amazon.

they treat me very well.

[Mountain Bike Vomit Carnage]

I am crazy about my e-reader and carry it everywhere. I will always look for an ebook before I consider purchasing a paper book.

[BenKenobi]

Eh, hits too close to home.

Cheap entertainment.

That said, most stores won’t carry the books that I really want, and you have to order them all. That is what is killing them, when I can order them from Amazon, and save money.

What’s the point of having an actual bricks and mortar store, when you don’t have the books?

[Myrddin]

If you have a Borders membership (free), you get an e-mail every few days with a one-time use coupon with discounts from 20% to 50%. If you have the paid membership, you get another 10% off. Buying at the store in San Diego, that 10% extra negates the sales tax. The discount comes off the list price. I still beat Amazon in many cases. Especially when it is a sky high priced technical book that even Amazon doesn't discount.

We have a Walden's in Pocatello. Frankly, why bother? Not much I want to buy on the shelves. Lots of books. Lots of floor space, but nothing that interests me. Too bad, since I spend upwards of $1,000 annually on technical books. When I'm home, that is typically all Amazon purchases. Even the B&N in Idaho Falls is poor for computer/electrical engineering titles. The one in Mira Mesa (San Diego) is very good.

[SamAdams76]

I am a big fan of the Kindle and reading e-books in general when I am on the road. However, at home, I much prefer a real book and I believe every true home should have shelves of books. Especially the classics like Dickens, London, Hemingway, etc. Those books you can read over again and pass down to your kids.

The Kindle and iPad are great for reading newspapers, magazines and lightweight novels you would only need to read once (such as Grisham, King, Koonz).

I am not a fan however of the big-box bookstores like Borders, Barnes & Noble. Those places tend to be noisy, crowded and not conducive at all to finding good books to read. Also, most shelf space is dedicated to crap you would never want to shelve in your home library.

Amazon.com is the place I get most of my books these days. I do believe that the days of the brick & mortar stores are coming to an end, although B&N stands to hold out for a while.

[Myrddin]

I share your gripe about the used condition of the books. One title that I had been seeking for weeks showed up, but was clearly damaged by mishandling. I threw in the towel and ordered it from Amazon. Often, if there isn't an immediate requirement for the book, I'll order a used copy from Amazon. I care more about content than condition (except when a CDROM is expected as part of the deal). The "used" offering in "new" condition rarely disappoint.

I also share your annoyance with the "layabouts" clogging the aisles and chairs. The people who use the cafe as their personal office with free WiFi are really annoying. You see that in Borders, B&N and Starbucks.

[Myrddin]

I gave my wife a Samsung Galaxy tablet for Christmas. It is like an extra large "Droid". She already has a Droid, so zero learning curve. The Kindle and Nook apps run perfectly and it is far more readable than using the phone. Her existing Amazon Kindle account slurped her books in without a problem. I did upgrade the wireless router at the house to keep the data plan costs to a minimum. I gave her the choice of an iPad or Galaxy. The iPad was just too big.

[Myrddin]

My Droid just squawked at the arrival of a new e-mail. Surprise! Borders has a 50% off any single item (in store only) for Jan 1 and Jan 2. Too bad I'm out of range. The nearest store is 110 miles south in Logan, UT. Not worth the drive in subzero weather, icy roads and a paltry CS section.