Street.com published an eye-popping article today for anybody with an interest in the tumultuous book market.
The headline reads: Barnes & Noble to Go Bankrupt Next, Poll Says
Source: Bankruptcy Scores: 20 Riskiest Retailers
We’ve watched B & N stock lose close to half its market value over the past 12 months and it remains the company no one wants to buy. But bankrupt? Here’s the scoop from The Street.
Street.com has analyzed retailers using the 1968 Altman Z-score, a formula which has shown to be 72% accurate in predicting bankruptcy within 2 years. Twenty retailers, one of them B & N, were found to be in the danger zone for bankruptcy.
Then Street.com polled its readers with this question: Which retailer (out of the 20 retailers) do you think is most likely to file for bankruptcy?
Barnes and Noble won the prize with 31% of the votes. The poll also showed that readers did not think that Barnes & Noble’s great hope, The Nook, would be enough to ward off bankruptcy.
Click here to read the full article. You can also learn about some of the other 20 retailers who were in the the Altman zone for bankruptcy here.
The Bookstore Key Series on Changes in the Book Industry
Decluttering the Book Market: Ads on the latest Kindle (April 14) Independents on the Exposed End of the Titantic? (April 6th) Border’s Bonuses (March 30) The Experience of Holding a Book (March15) Finding “Deep Time” in a Bookstore (March 8th) Reading The New Rules of Retail by Lewis & Dart (March 3) The Future Price of the Physical Book (Feb 18) Borders Declares Bankruptcy (Feb 16) How Great Things Happen at Lemuria (Feb 8th) The Jackson Area Book Market (Jan 25) What’s in Store for Local Bookselling Markets? (Jan 18) Selling Books Is a People Business (Jan 14) A Shift in Southern Bookselling? (Jan 13) The Changing Book Industry (Jan 11)
<a href=”http://blog.lemuriabooks.com/2011/04/bookstore-keys-decluttering-the-book-market/”>Decluttering the Book Market: Ads on the latest Kindle</a> (April 14)<a href=”http://blog.lemuriabooks.com/2011/04/bookstore-keys-independents-on-the-exposed-end-of-the-titanic/”> Independents on the Exposed End of the Titantic?</a> (April 6th) <a href=”http://blog.lemuriabooks.com/2011/03/bookstore-keys-borders-bonuses/”>Border’s Bonuses</a> (March 30) <a href=”http://blog.lemuriabooks.com/2011/03/bookstore-keys-finding-deep-time-in-a-bookstore/”>The Experience of Holding a Book</a> (March15) <a href=”http://blog.lemuriabooks.com/2011/03/bookstore-keys-finding-deep-time-in-a-bookstore/”>Finding “Deep Time” in a Bookstore</a> (March 8th) <a href=”http://blog.lemuriabooks.com/2011/03/bookstore-keys-reading-the-new-rules-of-retail-by-robin-lewis-michael-dart/”>Reading The New Rules of Retail by Lewis & Dart</a> (March 3)<a href=”http://blog.lemuriabooks.com/2011/02/bookstore-keys-the-future-price-of-physical-books/”> The Future Price of the Physical Book</a> (Feb 18)<a href=”http://blog.lemuriabooks.com/2011/02/borders-declares-bankruptcy/”> Borders Declares Bankruptcy</a> (Feb 16)<a href=”http://blog.lemuriabooks.com/2011/02/bookstore-keys-how-great-things-happen-at-lemuria/”> How Great Things Happen at Lemuria</a> (Feb 8th)<a href=”http://blog.lemuriabooks.com/2011/01/bookstore-keys-the-jackson-book-market/”> The Jackson Area Book Market</a> (Jan 25)<a href=”http://blog.lemuriabooks.com/2011/01/bookstore-keys-whats-in-store-for-local-bookselling-markets/”> What’s in Store for Local Bookselling Markets?</a> (Jan 18)<a href=”http://blog.lemuriabooks.com/2011/01/bookstore-keys-selling-books-is-a-people-business/”> Selling Books Is a People Business</a> (Jan 14)<a href=”http://blog.lemuriabooks.com/2011/01/bookstore-keys-a-shift-in-southern-bookselling/”> A Shift in Southern Bookselling?</a> (Jan 13)<a href=”http://blog.lemuriabooks.com/2011/01/bookstore-keys-the-changing-book-industry/”> The Changing Book Industry</a> (Jan 11)
Written by Lisa
Bookstore Keys: Barnes & Noble Bankrupt?
3 responses so far ↓
1 Ellis // Apr 29, 2011 at 9:09 am
I’m not happy these guys are going bankrupt. I know that people’s jobs are going to be in turmoil over this. One of John’s Bookstore Keys posts mentioned that book The New Rules of Retail, and how many businesses are going to be forced into a shutdown because they’re models cannot fit to the contours of where retail is heading. I wonder if Barnes and Noble is in this predicament.
2 paul // Apr 29, 2011 at 3:42 pm
I’ m not surprised if B & N is done. The last time I was in one here in New England, their whole fiction section was paperback. The only exceptions were new authors works in a small separate section. That is what happened at Borders here before they filed. Digitalization did in music stores, it will do the same to much of retail especially content based businesses. Blockbuster is a prime example. A mixture of new and used will buy some businesses time. Perhaps the Game Stop business model is a place to start on the retail level. By 2020 the whole retail landscape will be digitalized and “Amazon”ed. Change comes quickly in the digital age.
3 billy neville // Apr 29, 2011 at 8:21 pm
as independent retailer john, do believe that NO one wins in business bankruptcy…suppliers, customers, etc. YET what a continuing window of opportunity out there for GREAT independent book store(s), like lemuria, will ALWAYS have a GREAT future; customers DO appreciate YOUR differentiation, and customer service, and on and on; have watched you grow lemuria, for so many years, and your fine and stellar reputation as ONE of the VERY best, not only locally, BUT nationwide!; just gets stronger and stronger, even as others fall by the wayside; KEEP UP the great work, as know it is NEVER easy…no finish line OR time out; YET you and your associates understand those facts, and practice your TRADE TO PERFECTION!: REGARDS. billy neville
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