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CYA...../R (Covering Your Accounts Receivable) Blog 

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B&N- CFO Quits
Monday, October 24, 2011


Barnes & Noble's Finance Chief Quits
Chief Financial Officer Joseph Lombardi resigned abruptly Friday, opening a hole in the bookseller's executive ranks at a critical time.
Mr. Lombardi's departure comes as Barnes & Noble is endeavoring to transform itself into a digital powerhouse so it can better compete with Amazon.com Inc. For the fiscal year ended April 30, the New York-based company swung to a sharp loss compared with a profit a year earlier, as it invested heavily in digital technology, including its line-up of Nook e-readers. Barnes & Noble is trying to remake itself into a digital powerhouse. In a recent Securities & Exchange Commission filing, Barnes & Noble described Mr. Lombardi, 49 years old, as "critical to the daily operations of the company in addition to his financial responsibilities."
Mr. Lombardi had been CFO since 2003 and signed a new three-year employment agreement in March 2010. He will be succeeded on an interim basis by Allen Lindstrom, the 45-year old corporate controller. Barnes & Noble said an executive search is now underway. In a statement made via a company spokeswoman, Mr. Lombardi noted that Barnes & Noble has undergone a significant transformation in the last two years and that "this seems like the right time for a change. I'm committed to the company, which is why I'm staying on through the transition of a new chief financial officer."
The nation's largest bookstore chain put itself up for sale in August 2010 and then fought a rugged proxy battle with activist investor Ron Burkle. Earlier this year, Liberty Media Corp. proposed buying the retailer but ended up investing $204 million for a 16.6% stake.
The retailer posted a $56.6 million loss on $1.42 billion in revenues in its fiscal first quarter ended July 30.
Mr. Lombardi was a key contact point for the company with Wall Street. David Strasser, an analyst at Janney Montgomery Scott LLC, said Barnes & Noble may now look to the West Coast for a new chief financial officer, one who has a strong digital background. "The story here is that Barnes & Noble is undergoing a real digital transformation, and I think they'll look for a new CFO who can tell that story."
One shareholder agreed, saying: "this represents an opportunity to add clarity."
Loehmann's default
Monday, November 01, 2010

Loehmann’s defaults on bonds, mulls reorganization

Discount designer retail chain Loehmann’s, owned by a unit of Dubai World, is in talks with lenders over a possible reorganization after the company failed to receive enough bondholder support for a private note exchange offer. The company offered to exchange outstanding 12% notes due 2011, floating-rate notes due 2011, and 13% notes due 2011 for new notes maturing in 2014. However, the company received acceptances for just 92.4% of principal of the new notes, short of the required 97%.
Loehmann’s Capital therefore will not complete the note exchange. In addition, the company will miss a 30-day grace period on an interest payment that was due in October, thus defaulting on the bonds and a revolver between an operating subsidiary and Crystal Financial.
“Loehmann's is continuing its discussions with certain significant holders of the old notes and Crystal regarding forbearance agreements and is exploring all of its alternatives, including a possible pre-negotiated reorganization proceeding,” the company said in an Oct. 29 statement.
In September 2004, the company sold a three-part bond issue through bookrunner Jefferies & Co. The niche offer came at guidance and size, raising $110 million to help fund a leveraged buyout by Crescent Capital Investments for $177 million. A $55 million issue of 12% class A-1 senior secured notes due 2011 and a $20 million issue of L+800 class A-2 senior secured floating-rate notes due 2011 both priced at par. A $35 million issue of 13% class A-2 senior secured floating-rate notes priced at 95.6.

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