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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.

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