The country's second-largest book retailer had been counting on a Christmas miracle to rescue it from deep financial doldrums. But the holiday season played Scrooge instead. Now, confronting a liquidity shortfall, a bankruptcy seems more likely than ever.
The country's second-largest bookstore widened its third-quarter loss to nearly double that of a year ago. Even worse, the estimated value of its inventory has declined, making it harder for Borders to borrow money. Will the company find a way to transform itself?
When Barnes & Noble announced it was looking for a buyer, we entertained the fanciful notion that struggling rival Borders might put in a bid. As absurd as the idea was, that buyout offer has been made. Here's why it has virtually no chance of succeeding.
For the quarter ending July 31, overall sales dropped 11.5% from a year ago to $526 million, continuing a downward spiral that's seen revenues over this time decline year-on-year from $945 million in 2007 to $749 million in 2008 to $617 million in 2009.
Think struggling book retailer Borders finished with layoffs in 2010? With four rounds of layoffs so far this year and no new ideas for a turnaround, don't be surprised if co-CEO Bennett Lebow pulls out his old 1980s playbook and makes a bid for, say, Barnes & Noble.
Investors clearly aren't convinced new CEO Bennett LeBow's arrival is good news for Borders. Could it be his checkered history of failed hostile takeovers of larger companies, funneling company money for personal use and many rounds of litigation?
Struggling book retailer Borders announced in a statement Thursday that Chairman Bennett LeBow adds the title of CEO, Borders Group, while Mike Edwards, who was the interim company head since January, gets a permanent job -- sort of.
Thanks to a $25 million stock purchase by financier Bennett LeBow, book retailer Borders has itself a brand new boss. If you're one of the company's stockholders, you might want to consider LeBow's past before planning for the future.
The second-largest bookstore chain in the U.S. is out with its first-quarter earnings report. Despite a recent $25 million equity injection, the picture is not pretty. Faced with increased competition from online rivals, the company's sales fell 15.4%.
Financier Bennett LeBow will become Borders' chairman and biggest shareholder with his $25 million investment in the struggling bookseller. The deal needs shareholder approval, and it's likely to get the nod.