Thread regarding Follett layoffs

B&N Buyout

Nebraska Book Company pawned off it's money-s—ing NEEBO division onto Follett a couple years ago, now.....Follett is going to help keep another company out of bankruptcy court. After this fall rush, B&N will release sales results which will drop their stock price even more. With due diligence, it would be obvious to see they are drowning in debt. But due diligence is not a term the executives understand (after all, most of the executives at Follett came from the horribly-managed K-mart/Sears group). Rather than wait for a Chapter 11 filing and then cherry-pick specific contracts we'd like to take over, the Westchester Ivory Tower is looking to buy them out, lock stock and barrel. Next month they will be high-fiving this great acquisition they made. This is like a bad horror movie, we all see it coming. Run, run away!!

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Post ID: @10NBwlQ0

8 replies (most recent on top)

Putting aside the fact that this would be a bad deal for us, is it really even a secret anymore that this has been a plan? A gvp in the west has been telling people for nearly two years that this was in the works.

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Post ID: @10NBwlQ0-6ete

Have you guys seen Follett's first quarter results. First quarter is always a loser and Follett loses money just like BN. Follett makes money fall rush and spring rush. Loses money the rest of the year. Follett is a mirror to BN education. There is no future in this industry there is no reason to shop at on campus bookstore instead of Amazon except for financial aid. And Trump is making America great again and will eliminate financial aid.

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Post ID: @10NBwlQ0-6uwq

Anti-Trust. that's laughable. Each college store is a monopoly on it's campus. There is zero overlap. The consumer already lacks choice a merger wouldn't decrease choice or increase price.
follett's management team being unable to conjure a plan to buy a faltering competitor is another story. Based stock price, the valuation has sunk 32% in the past year. The S&P lost less than 6% in 2018, and it's up nearly 16% this year. Why buy an under performing company? The benefit to the stock holders (yes, privately held shares) is what?

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Post ID: @10NBwlQ0-5jlc

I don't know how Follett could buy B&N
With anti trust laws regarding monopoly companies.This is not going to happen.

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Post ID: @10NBwlQ0-2xxx

The retail division was bought by the hedge fund, not the college division. And does anybody think the Follett P&L would look any better if it was a public document? The millions of bad debt sitting in everyone's backrooms!

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Post ID: @10NBwlQ0-1zws

BN already bought by hedge fund.

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Post ID: @10NBwlQ0-rgr

BNED lost $ 32.2 million in 1st quarter. https://www.chron.com/news/education/article/Barnes-Noble-Education-Fiscal-1Q-Earnings-14380983.php

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Post ID: @10NBwlQ0-cfx

BN actually beat EPS by .20/share. Not sure the validity of this post...

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Post ID: @10NBwlQ0-hps

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