Physical books, and physical bookstores, are not going away anytime soon, says an investor.
Following the bankruptcy and closure of Borders in 2010, Barnes & Noble holds the unenviable title of the last remaining bookstore chain in the US. Over the years, B&N has frequently struggled to find solid footing in the marketplace.
This week, though, one of the company’s top shareholders paid the chain a compliment, reports Andrew Albanese, Publishers Weekly senior writer. In a letter addressed to B&N’s embattled board of directors, Thomas Sandell, CEO at Sandell Asset Management Corp., a “private, alternative asset management firm,” declared the company is undervalued, at least by other investors.
“Sandell said B&N’s share price – which was just over $7.00 this week, down 36% from the beginning of the year – is undervalued in part because investors have overreacted to the problems faced by brick-and-mortar stores,” Albanese tells CCC’s Chris Kenneally. “Physical books, and physical bookstores, are not going away anytime soon, Sandell said.”
Every Friday, CCC’s “Beyond the Book” speaks with the editors and reporters of “Publishers Weekly” for an early look at the news that publishers, editors, authors, agents and librarians will be talking about when they return to work on Monday.