Barnes & Noble enters into credit agreement to avoid bankruptcy

Barnes & Noble has entered into an agreement to extend its existing $750 million credit facility through July 2023.

The transaction was led by Bank of America, JPMorgan Chase, Wells Fargo Bank, National Association, and SunTrust Robinson Humphrey, Inc. Bank of America will administer the loan.

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“We appreciate the strong level of support we received from our lending partners,” said Allen Lindstrom, CFO of Barnes & Noble. “Extending our credit facility provides us continued flexibility to support the seasonality of our business and execute on our strategic initiatives.”

The phrase “Save Barnes & Noble” started trending on Twitter a few months ago, after The New York Times published an opinion piece about the financial woes of the bookstore chain. The article cited the company's declining revenue from Nook, which has fallen more than 85 percent since 2012.

The book retailer reported its fiscal 2018 third quarter results earlier this month. Total sales for the third quarter were $1.2 billion, declining 5.3 percent as compared to the prior year. Comparable store sales decreased 5.8 percent for the quarter, primarily due to lower traffic. Comparable store sales trends did improve in January, declining 3.5 percent.

"While we were disappointed with our holiday sales, comparable store sales trends did improve in January," said Demos Parneros, Chief Executive Officer of Barnes & Noble. "We have initiated a strategic turnaround plan that is centered on growing the business and enhancing shareholder value. In the short term we are focused on stabilizing sales, improving productivity and reducing expenses. Achievement of our longer-term goals requires a significant multi-year transformation. We expect our plan to provide consistent improvement beginning in fiscal 2019 and beyond."

Barnes & Noble has more than 600 stores. It wouldn’t be the first bookstore giant to struggle as consumers head online for their shopping needs. Borders, another book and music retailer, ceased its operations in 2011. The retailer employed almost 20,000 people.

Barnes & Noble has several locations in Ohio, including stores at Mad River Station Shopping Center and The Shoppes at Beavercreek.

Other retailers have already shut down stores this year in the region. Both Elder-Beerman and Toys “R” Us have filed for bankruptcy and liquidated stores.

Here’s what people had to say about Barnes & Noble: