"We are operating with urgency and decisive action to accelerate market adoption of the FDC model. We’re streamlining the company structure and we’re taking costs out to allocate capital to our highest priority businesses. We have a clear path forward and we are confident in our ability to create durable growth and shareholder value."
https://seekingalpha.com/article/4562682-barnes-and-noble-education-bned-q2-2023-earnings-call-transcript
I agree partnering w a Used Book Co. to run your campus store is not wise right now. But It’s not the Lease Provider- it’s more that, that Business Model is cooked. Hybrid and/or Institutionally run are where the market is moving now. There is not enough margin left to split between an Univ. and Leasor. VitalSource and Redshelf can easily help operate course materials for any Univ./College. You can keep your choice of paper or digital….for now too. Also, why give up your logo and college brand to someone else when that is also very manageable now. Own your Univ. brand and manage it yourself or Hybrid - it’s just easier than ever now.
"one of the other course material providers"
Like who? Follett is doing the exact same thing. Even if they drop BNED and go to Follett, the schools will realize it's the same thing. At best Follett will get a 5 year contract without a resign. Who does that leave? Akademos? The only thing of substance they provide is a platform for instructors to submit adoptions and help stay HEOA compliant. I guess there might be some providers that are region or state specific - like Texas Book Company, but I don't know how in the he-l they have managed to stay in business, especially when bigger companies like Nebraska have shut down.
CFO resigned on 4/14. Univ. Administrators and ee's should have backup plans in place......
Check out the Follett board.
So if I understood the Q3 call, they are telling University Administrators to get on board w 100% digital books by Fall 2023 or they risk having their contracts altered to a 0% Commission rate and then possibly being dropped as a Partner institution in Fall 2024- all while starting to layoff staff. Seems bold. Wonder how the University administrators will take this? Perhaps the Institutions would jump at the chance to take back their brands and the non book biz and then look at Vital source, Redshelf, or one of the other course material providers.
Share price down to $1.55
"Included in the strategic actions are “significant cost reduction initiatives” that management indicated are underway. A total of $30M to $35M of annualized cost savings is expected upon full implementation. Those savings are expected to be funneled into investments in the aforementioned First Day business."
https://seekingalpha.com/news/3914426-barnes-noble-education-stock-slides-30-after-earnings-miss-guidance-cut