Borders Group Inc. today announced plans to reduce its corporate workforce by 20% or 275 positions, including more than 150 positions at its Ann Arbor, MI, headquarters. The cuts, which will not affect store personnel, are part of the retailer’s reduce annual expenses by $120 million. AP at Forbes The Wall Street Journal Paid subscription may [...]
Barnes & Noble, Inc., has assembled a team of executives and advisors to review purchasing Borders Group, Inc, the number two bookstore operator, which put itself up for sale in March. A combined B&N and BGI — if federal regulators allowed it — would control roughly a third of the retail book market. The Wall [...]
Borders Group Inc.’s biggest shareholder, William A. Ackman, has extended new financing terms to the retailer that further incentivize it to sell to a buyer by October 1st. The terms between BGI and Ackman’s Pershing Square Capital Management were re-negotiated after other financiers expressed interest in backing Borders. The Wall Street Journal (Apr. 8, 2008) Paid subscription may [...]
News of Borders’ liguidity challenges sent its shares plunging almost 29% yesterday. Commenting on the news about a rival bookseller, Barnes & Noble’s coo, Mitchell S. Klipper, said his company had not been approached by Borders, but would potentially be interested in a purchase. The New York Times The Wall Street Journal Paid subscription may be [...]
Facing a near-term liquidity challenge, the nation’s second-largest bookseller considers selling all or part of its operations and, meanwhile, has secured up to $42.5 million in financing to help the chain continue operations. Borders has lost market shares both to online retailers and Wal-Mart in recent years. The New York Times (Mar. 20, 2008)
CEO George Jones said, “The overall holiday shopping environment was intensely promotional and impacted the bottom line more than we anticipated.” Borders Group Inc. reported a 3.9% increase in holiday sales, but predicted earnings would be flat or down slightly due to the heavy promotions. The Wall Street Journal Subscription required. (Jan. 10, 2008)