Bennett LeBow, who became the largest shareholder in Borders Group through his $25 million investment last month, appears ready to adopt a more hands on role at the chain, having been named CEO of Borders Group Inc. He was already chairman. Mike Edwards, who has served as interim CEO of Borders since January, has been appointed president of Borders Group and CEO of Borders, Inc., the principle subsidiary of Borders Group. Edwards will report to LeBow.
The appointments complete the makeover of the top management of Borders since Ron Marshall resigned at the beginning of the year after 12 months on the job. Edwards was named interim CEO at that point. In late May Lebow’s investment firm, Vector Group, bought about a 18% stake in Borders and became chairman with Mick McGuire, stepping down from that role. McGuire had been named chairman at the urging of William Ackman who had been Borders’ largest shareholder and still has a significant investment in the chain.
In the Borders press release, the company said LeBow has been affiliated with the Vector Group since 1986. In March of 1996, under his leadership, Liggett Company, owned by Vector Group, became the first tobacco company to settle smoking-related litigation. Before devoting himself completely to private business in 1968, LeBow served in the Pentagon initially as a First Lieutenant and subsequently as a civilian, serving as assistant to the Assistant Vice Chief of Staff of the U.S. Army, Borders noted.
