Accompanying the release of its third-quarter numbers, Borders announced that it is no longer considering selling the company. CEO George Jones said that after a review of its options, the company determined that it was best to “remain as we are,” independent and publicly traded. The company still has the option to sell its Paperchase division to its largest shareholder, Pershing Square Capital, for $65 million. The deadline for that sale is January 15. Borders is also in discussions with Pershing regarding alternative financing arrangements, although it declined to reveal what those might be. Looking ahead to next year, Borders has committed to opening one new concept store and several airport outlets. The company will also place a high focus on improving gross margins, and it is examining such things as its discounting and promotion policies and improving inventory turn to boost margins.
Volume 255 Issue 48 12/01/2008