This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Borders Story: The Final Chapter?

But after just one year on the job Marshall resigned, igniting a shakeup in the executive ranks. He was replaced on an interim basis by Michael Edwards, executive vice president and chief merchandising officer. At the same time Borders also appointed a new chief financial officer and executive vice president of merchandising and marketing.

Amid the corporate chaos, Borders managed to repay its $42.5 million loan from Pershing Square Capital and announce a new $700 million revolving credit facility and $90 million term loan.

Then financier Bennett LeBow stepped in, investing $25 million into the company and purchasing a 15.5% stake, to become Borders' largest shareholder. And just months later, LeBow took over the CEO post while Edwards was named head of Borders Inc., the company's core book business.

In August 2010 CFO Mark Bierley resigned, and was replaced on an interim basis by Glen Tomaszewski. In October, former Las Vegas sands executive, Scott Henry, stepped in to fill the role.



Chapter 8: The Final Chapter?

As 2010 drew to a close, Ackman offerd to finance a Borders' bid of $963 million, or $16 a share, for Barnes & Noble, which had put itself up for sale earlier in the year. Borders said it would consider the proposition, but just weeks later, warned that it could face a cash shortage in early 2011.

After another lackluster holiday season, Borders announced that it would also delay payments to some of its vendors, which prompted reports that publishers were halting shipments of books to the company. Borders has now spent the last several weeks meeting with publishing big wigs and presenting a plan to get back in their good graces.

Since the start of 2011, Borders has now announced another round of layoffs, the closure of a distribution center and two executive resignations. And while GE Capital said it will provide Borders with a conditional loan commitment of $550 million, the company again delayed payments to vendors in January to preserve liquidity.

So when will the story end? As its history makes it painstakingly clear the company is in drastic need of a complete overhaul. But while Borders may have been a few chapters behind its competitors, the book is certainly not closed yet.

--Written by Jeanine Poggi in New York.



>To contact the writer of this article, click here: Jeanine Poggi.

>To follow the writer on Twitter, go to http://twitter.com/jpoggi.

>To submit a news tip, send an email to: tips@thestreet.com.

RELATED STORIES:



6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AMZN $377.06 0.66%
BKS $23.86 0.63%
AAPL $125.37 -0.79%
FB $82.93 -0.32%
GOOG $554.00 0.36%

Markets

DOW 17,888.86 -87.45 -0.49%
S&P 500 2,077.15 -9.09 -0.44%
NASDAQ 4,925.04 -22.4010 -0.45%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs