InsideMobileApps InsideSocialGames 10,000 Words FishbowlNY FishbowlDC LostRemote TVNewser TVSpy AgencySpy PRNewser MediaJobsDaily UnBeige

Posts Tagged ‘David Stoddart’

Fopp Report: Individual Stores May Be Rescued, But Not Whole Chain

Publishing News has its report on the bankruptcy of music chain Fopp, starting out with the news that suppliers are claiming ‘retention of title’ on the stock, in an attempt to recover debts, after the chain fell into receivership last week. A spokesperson for Ernst & Young, which is handling the music chain’s receivership, said: “There have been enquiries from interested parties but interest in the business as a going concern is poor so far. Any parties who are interested in the business need to contact us as early as possible as our timeframe is in terms of days rather than weeks.”

Publishers spoken to have expressed regret at the chain’s closure and concern about the money owed, while emphasizing that the sums involved are relatively small compared to what’s owed to DVD and music companies – somewhere on the order of 10 to 20 million pounds. Complicating matters, the decision of suppliers to claim ‘retention of title’ on much of Fopp’s stock – where the supplier claims ownership on goods until they have been paid for – could further dampen any enthusiasm to buy the business as a whole. David Stoddart at Teather & Greenwood saw some hope for individual stores being bought, although was less optimistic about the chain as whole, while Richard Ratner at Seymour Pierce echoed this and added: “It’s a very difficult business and you do need economies of scale. Fopp’s turnover together with its large number of stores didn’t provide that. It is still possible that someone might want to take the whole lot, if unlikely given the current climate. One or two sites could interest HMV, although they may want to downsize at the moment. It’s a bleak picture.”

Mediabistro Course

The Art of the Book Review

The Art of the Book ReviewStarting August 4, learn how to get paid to write reviews that will influence the publishing landscape! Taught by a Publishers Weekly book critic, you'll learn how to recommend a book to its audience, write reviews of varying lengths, tailor a review to a specific publication and more! You'll leave this course with two original reviews and a list of paying markets for book reviews. Register now! 

Possibilities for Borders UK Buyout

Sir Richard Branson is considering a 50m pound bid for the Borders books chain in the UK, in what would be a major expansion of his retail operations. According to a report in trade magazine Retail Week, the billionaire tycoon has requested detailed information on the 70-shop chain from Merrill Lynch, the investment bank which is handling the sale.

But Branson faces quite a lot of competition, according to Publishing News. Industry observers believe that David Roche, Border’s CEO on the UK side, will try and mount an MBO for the company following last week’s shock announcement from its parent company that it intended to sell its UK, Australia and New Zealand operations to concentrate on the domestic US market. Speculation increased this week that a breakup of the company is likely too and that former Ottakar’s boss James Heneage may find himself involved, too. One observer said: “David would love to take the company – he’s ambitious and well-regarded, and is probably one of the more capable people to be able to front an MBO. Borders US has to sell it within a time window in order to save face, because they’ve gone so public on it and in order to keep the UK team engaged. If David can get the backing, he might get it at a good price.” Roche himself simply said: “All options are open.”

Observers point out that an MBO will, obviously, require backing. Analyst David Stoddart at Teather & Greenwood said: “I can’t believe that the private equity fraternity hasn’t had a good look at HMV and drawn their own conclusions. They’ll have to make an assessment of the exit price they’re likely to get after three to five years.” Figures of between �50m and �70m are being suggested for the group, with Richard Ratner at Seymour Pierce saying: “I don’t think it will go for very high money and it could be broken up. An MBO is possible. Apart from WHSmith cherry picking, you’ve got to rule Smiths out. Waterstone’s might be interested in the odd store I suppose.”