Thread regarding Follett layoffs

https://www.courtlistener.com/docket/16743563/campus-book-company-inc-v-mcgraw-hill-global-education-holdings-llc/

https://legalnewsline.com/stories/528155878-lawsuit-challenges-barnes-noble-other-publishers-over-inclusive-access-for-college-textbooks

Follett cannot sustain classes being online. First the fulfilment model is terribly inefficient, second Follett does not make money on text and how many students would do search online and end up selecting cheaper options at Amazon, better customer service and faster free shipping. Follett better pray that campuses open up physical classes this Fall.

Even when follett treated its employees better (at one point they weren't a bad company to work for, believe it or not), its model was pretty gross. They'd pay for store remodeling or rebuilds, they pay the administration. In exchange they bought a captive market. They controlled the text buy back and the used texts coming into the store. The captive market had few choices but to grumble and take it. Every campus had small adhoc cooperative of students selling and swapping. There were never enough co-ops to impact follett's bottom line.
Online book selling changed that. It's been 15 years since follett started taking a beating. It never adjusted. sad, mean, terrible company.

https://finance.yahoo.com/news/textbook-expensive-lawsuit-145816444.html

https://www.therampageonline.com/news/2019/09/25/i-am-done-bookstore-privatization-outrages-college-community/

I believe 2 of the "retired" RMs were from California.

Also, zero sporting events til January. Gifts and apparel are going to take a nose dive. I would image the only students buying books through our website is because they have financial aid. Amazon consistently cheaper and free two day shipping. Follett charges what, 8 bucks for 5-7 business days? What's left? I'm really concerned we will see smaller contracts under start to close.

I saw a slide about a hybrid model.... perhaps they will just have an online store that routes to a central distribution center?

How far forward thinking can anyone be? The paradigm has changed. I can buy online, shop for the best price and usually have delivered in a matter of days. Who needs Follett?
It's a dying business. The family just wasted a bunch of money remodeling someone else's property in Westchester playing the big shot with the Ivory Tower. At some point they'll fold the tents and shut it down. Baker & Taylor is probably returning more profit that all the other Follett enterprises put together.

I don't know how profitable textbooks have been of late. All the unsold textbooks over the past few years don't go anywhere, they stay at the stores taking up space. Dead inventory doesn't help P&L.
I think the margins are in the over-priced clothing and giftware. Follett hired all the Einsteins from Sears to run Follett. C'mon CW, JH, et al, lets see how forward thinking you are.

follett is toast because it's a terrible company with abusive management.
Cal State isn't cancelling classes. It is cancelling on campus classes. It will have remote classes. Remote students still need course materials.
If follett had a brain left anywhere, they'd find a way to capitalize on this disruption. If follett hadn't chased out all of it's institutional experience, they may have had a chance.

Wasn’t one of the RMs from California?

If multiple states go remote learning for the fall, Follett is toast. You can be sure that the tower leadership are already making exit plans. The six RM’s who jumped ship, retirement or not, saw the warning signs.