Nebraska Book Files Second Amended Plan of Reorganization
NBC Acquisition Corp. and its subsidiaries, including Nebraska Book Company, an industry provider in solutions for the college bookstore marketplace, filed a Second Amended Plan of Reorganization and Disclosure Statement with the U.S. Bankruptcy Court for the District of Delaware. A hearing to approve the Disclosure Statement will be held on April 13, 2012.
“This is an important step in our process,” said Barry Major, the company’s president. “We have spent a great deal of time working with our lenders and have reached an agreement with the bondholder’s Steering Committee; this is a sign of confidence in the future of our business.”
Nebraska Book Company also filed a motion to reject executory contracts and unexpired leases, which rejects the real-property leases of approximately 40 off-campus bookstores. In January, the company announced it had received an extension to continue evaluating the performance of 45 off-campus stores. The company announced that most of these stores will be closing on or before March 31, 2012. The company’s on-campus bookstores are not impacted by this announcement.
“Our off-campus stores have faced tremendous competition over the past year. The historical advantage our off-campus stores enjoyed was better pricing through a vast selection of used books. This was impacted significantly. Students shopped either for on-line rentals or at the on-campus store which was beginning to offer a rental program,” said Major. “Even though our on-campus stores and our other divisions performed reasonably well, our financial performance as a whole missed our target due to the performance of our off-campus stores, which led us to make some difficult decisions.”
“Revenue declines have been severe in these stores and cumulatively they have lost over $3 million this year. We knew we owed it to our creditors and the Company to make some changes,” continued Major. “The Chapter 11 process allows us to initiate store closings if it will improve our overall financial performance; this decision does indeed improve our financial outlook.”
Previously on abfjournal.com: